E-Malt.com News article: 2123

Guangdong Brewery has seen its rating downgraded by DBS Vickers Securities who shifted its rating for the company from “buy” to “hold” on January 30. “The company’s share price fully reflects all positive factors, even after the announcement earlier this week that Heineken is to buy a stake in the brewer,” DBS Vickers Securities commented.

Analyst Alice Hui said in a research note that the brewer’s share price has soared by more than 55% since the end of October last year, and it has significantly outperformed both its peers and the market. “Hui also revised her forecast earnings for Guangdong Brewery upwards by 2% to HK$129 min the year to December 2004 and to HK$151m in the year to 2005, but earnings per share downwards by about 7% to HK$0.09 in 2004 and HK$0.11 in 2005. Hui blamed the enlargement of the firm's issued capital for the share earnings revisions. The enlargement will occur when Heineken’s transaction leads to a new share issue,” the press revealed.


04 February, 2004