Operating Margin

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Price: 2.76 EUR -0.72%

Market Cap: 22B EUR

16.1%

Improving

by 1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

16.1%

Operating Income

¥7B

Revenue

¥38.8B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

16.1%

Operating Income

€7B

Revenue

¥38.8B

Peer Comparison

Country	Company	Market Cap	Operating Margin
HK	China Resources Beer Holdings Co Ltd HKEX:291	84.1B HKD	Loading...
BE	Anheuser Busch Inbev SA XETRA:1NBA	114.7B EUR	Loading...
BE	Anheuser-Busch Inbev SA MIL:ABI	114B EUR	Loading...
NL	Heineken NV AEX:HEIA	38B EUR	Loading...
BR	Ambev SA BOVESPA:ABEV3	219.7B BRL	Loading...
NL	Heineken Holding NV AEX:HEIO	17.2B EUR	Loading...
DK	Carlsberg A/S CSE:CARL B	110.8B DKK	Loading...
JP	Asahi Group Holdings Ltd TSE:2502	2.5T JPY	Loading...
HK	Budweiser Brewing Company APAC Ltd HKEX:1876	101.4B HKD	Loading...
JP	Kirin Holdings Co Ltd TSE:2503	2T JPY	Loading...
CN	Tsingtao Brewery Co Ltd SSE:600600	85.1B CNY	Loading...

Market Distribution

Min	-36 930 000%
30th Percentile	-5.1%
Median	2.5%
70th Percentile	9.4%
Max	8 238.3%

Other Profitability Ratios

China Resources Beer Holdings Co Ltd
Glance View

Economic Moat

None

Market Cap

22B EUR

Industry

Beverages

China Resources Beer Holdings Co Ltd, often abbreviated to CR Beer, operates as a formidable force in the beverage industry, having carved its niche primarily in the beer segment. This Hong Kong-listed company is renowned for its flagship brand, Snow Beer, which has become a household name across China, consistently ranked as one of the top-selling beers globally by volume. CR Beer's strategic focus is on leveraging China's vast and diverse consumer base, where beer consumption remains an integral part of the social and culinary fabric. The company's operations extend from brewing to distribution, ensuring a significant presence in both urban centers and rural locales. Their robust distribution network and localized brewing facilities allow them to maintain efficiency and reduce costs, contributing to their substantial revenue streams. The company’s revenue model hinges on a combination of high-volume sales and strategic partnerships. Several years ago, CR Beer took a strategic step by forming a joint venture with the global giant, Heineken, thereby unloading international brands into its portfolio and gaining expertise in higher premium segments. While mass-market sales continue to underpin their business, there is a pronounced shift towards premiumization, riding on the rising disposable incomes and changing tastes of Chinese consumers. Investments in marketing and branding have helped the company maintain its market dominance, while also reinforcing loyalty amid fierce competition from both domestic players and international brands expanding their footprint in China. Through innovation in brewing and a keen eye on consumer trends, CR Beer not only sustains its prominent market position but also continually seeks out growth opportunities.

View CHK Analysis

CHK Intrinsic Value

Undervaluation 32%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

China Resources Beer Holdings Co Ltd
XHAM:CHK

Peer Comparison

Market Distribution

Other Profitability Ratios

China Resources Beer Holdings Co Ltd
Glance View

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China Resources Beer Holdings Co Ltd XHAM:CHK