Citigroup: Lowering BUD APAC (01876) target price to HKD 10.9, revising down profit forecast.

Citibank released a research report stating that due to the lower-than-expected revenue growth of BUD APAC (01876), the core net profit forecast for 2026 and 2027 has been reduced by 5% each, and the sales forecast has also been lowered by 3% and 4% respectively. The bank continues to use the classification and summation valuation method, and the target price has been adjusted from 11.4 Hong Kong dollars to 10.9 Hong Kong dollars, maintaining a "buy" rating. The bank gives a target multiple of 10 times EV/EBITDA for the Asia-Pacific West business (mainly in China) in 2026 forecast, with a premium of 15% compared to the global industry average, to reflect BUD APAC's leading position and good performance in the high-end and ultra-high-end markets in China; The target multiple for the Asia-Pacific East business (mainly in mature markets such as Korea) is 8 times, consistent with the global industry average, to reflect its relatively slower pace of high-endification.