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<Research> G Sachs Raises Budweiser APAC (01876.HK) TP to HKD8.5, Rates Buy
Recommend 6 Positive 9 Negative 2 |
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G Sachs issued a research report expecting Budweiser APAC (01876.HK) to announce its 1Q26 results on May 5. The broker forecasts 1Q26 organic revenue growth of 1.5%, while normalized EBITDA is projected to decline 11% YoY on an organic, constant-currency basis. In USD terms, reported net profit for 1Q26 is estimated at USD193 million, down from USD234 million in the same period last year. Regarding the China market, the report expects the sales volume decline in 1Q26 to narrow QoQ, with March returning to positive growth, mainly driven by proactive channel destocking and preparation for the peak season, as well as relatively warmer weather in South China. However, due to promotional activities and changes in channel mix, average selling price is still expected to record a YoY decline, though the drop has narrowed compared with 2H25. Gross margin is supported by volume leverage but partly offset by efficiency improvements. EBITDA faces relatively significant downward pressure, mainly due to increased commercial investments related to the Lunar New Year, the Winter Olympics and new brand promotions for Harbin Beer, as well as reduced other operating income (such as refundable bottle income). The broker expects continued solid growth in India under Budweiser APAC, while the Korea market faces the toughest full-year sales comparison base. At the group level, weaker shipments in Korea and soft sales in China will be partly offset by strong growth in India. The broker keeps its 20262027 net profit forecasts largely unchanged and raises its 2028 net profit forecast by 1.1%. G Sachs slightly lifts its TP for Budweiser APAC to HKD8.5 from HKD8.4, equivalent to 19x forecast 2028 P/E, and maintains a Buy rating. (ec/w) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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