Elevator Pitch
Hong Kong-listed China Resources Beer (Holdings) Company Limited (OTCPK:CRHKY) (OTC:CRHKF) [291:HK] is China's largest beer company, and it has successfully pursued a premiumization strategy with increased ASP (average selling price) more than offsetting flattish sales volume.
China Resources Beer trades at 39.9 times consensus forward FY2020 P/E which represents a premium to its historical five-year average forward P/E of approximately 30 times. The stock also offers a consensus forward FY2020 dividend yield of 1.0%.
I assign a "Neutral" rating to China Resources Beer. Although I am positive on the