China Resources Beer (Holdings) Co Ltd  00291

Summary (from latest quarterly report – 2015)

• Total equity  : 5.68 billion USD
• Market Cap is 36.6 billion HKD = 4.72 billion usd ( last price of the stock is 15.10 HKD)
• China Resources Beer (Holdings) Company Ltd is an investment holding and property investment company. The Company is engaged in retail, beer, food and beverage businesses
• Equity of total company decreased from 6.28 billion USD in 2014 to 5.68 billion in 2015
• Company has 1.04 billion USD in cash on account
• Total equity – cash on account = 5.68 billion usd – 1.04 billion usd = 4.64 billion usd
• In 2015 company has 640 million usd long-term debt, short – term debt was 516 million usd

In 2014 company had 2.55 billion usd long-term debt, short-term debt was 1.16 billion usd

• China Resources  balance sheet has become a little weaker in 2015 (In latest quarterly report - total equity decreased to 5.68 billion USD from 6.28 in 2014, total debt was 1.15 billion usd in 2015)
• Company's revenue increased in latest annual report  to 27.77 billion usd from 18.88 billion in 2013
• In 2014 China Resources  had 20.7 million usd net loss, net income in 2013 was 245 million usd
•  In 2014 company paid 35.6 million usd dividend to its shareholders

China Resources Beer (Holdings) Co Ltd  00291

China Resources Beer (Holdings) Company Limited, formerly China Resources Enterprise Limited, is engaged in the business of investment holding and property investment. The Company, together with its subsidiaries, is engaged in four consumer goods businesses in China, which include retail, beer, food and beverage. Owning 51% of CR Snow (largest brewing company in China) is one of the company's major assets. The other 49% of CR Snow is owned by SABMiller, a multinational brewing and beverage company based in London, UK.

China Resources Beer subsidiaries:

•  Chinese Arts & Crafts (H.K.) Limited, CRE Properties, Gain Land Limited and supermarkets –  1.5 billion worth  [SOLD OFF TO China resources 10 billion HKD Deal]
• China Resources Vanguard  – 600 million worth [SOLD OFF TO China resources  10 billion HKD Deal]
• China Resources Ng Fung Limited - 300 million worth [SOLD OFF TO China resources 10 billion HKD Deal]
• China Resources Cikelong (Zhejiang) Supermarket Co, CRE Beverage Trading Limited - 300 million worth [SOLD OFF TO China resources 10 billion HKD Deal]
• Investment holding and property management - 300 million worth [SOLD OFF TO China resources 10 billion HKD Deal]
• China Resources Food & Beverage (Chengdu) Co – 1 billion worth [SOLD OFF TO China resources 10 billion HKD Deal]

• China Resources Beer owns a 100% share in CR Snow worth 5 billion usd (CR Snow was acquired for 3.6 billion usd)

Total = 5 billion usd

Opinion about the company

Fundamentally it is a not bad company and in the future we can expect its growth (Acceptable debt (1.15 billion usd), big amount of cash on company's account, ROE is negative :  around -11 %).