Citigroup: Gives a "buy" rating to BUD APAC (01876) with a target price of 11.4 Hong Kong dollars.

Citi released a research report, stating that BUD APAC (01876) first-quarter core net profit was roughly flat year-on-year at $234 million, benefiting from a 2 percentage point decrease in effective tax rate and a 5-6% appreciation of the RMB against the US dollar. Citi has a "buy" rating for BUD APAC with a target price of HK$11.4. During the period, the group's organic sales volume remained flat year-on-year, organic revenue declined by 1%, and normalized EBITDA declined by 8% year-on-year. In the quarter, organic revenue in the Asia-Pacific region (mainly South Korea) fell by 6%, with an average price increase of 4% but a 10% decrease in sales volume. Sales in South Korea recorded a low double-digit decline, affected by the high base effect of early shipments before last year's first quarter price increase.