CR BEVERAGE

China Resources Beverage (2460.HK) opened lower and extended losses in the morning session, closing 4.02% down at HKD 7.64, with the intraday high of 7.96 failing to hold and the low matching the close at 7.64 on turnover of ~HKD 10.2 million. The decline was driven by the company's disappointing FY2025 results: Q4 revenue fell 15.1% YoY to ~HKD 2.67 billion, net profit plunged 62.96% YoY to ~HKD 100 million, operating profit turned negative to -HKD 11.3 million, and EPS dropped 67.23% to HKD 0.0413, with a net profit margin of only 3.76%. Despite a combined final and special dividend of HKD 0.29 per share representing a ~5.48% yield, the weak earnings overshadowed the payout. The stock is now 42.64% below its 52-week high of HKD 13.32, trading near the 20-day MA (HKD 7.63) but below the 60-day MA (HKD 7.85), and down 24.58% YTD. Recent target price cuts by CICC (to HKD 9.47), Goldman Sachs (to HKD 8.5), and Citigroup (to HKD 10.7) reflect rising caution on profitability. However, a planned share buyback of up to HKD 530 million may provide some near-term support.