Citi: Slightly lowered the target price for BUD APAC (01876) to HK$10.8 and downgraded earnings estimates.
Reaffirming the ranking of the Chinese beer industry: China Resources Beer (00291) > Budweiser Asia Pacific > Qingdao Beer (00168). All three are rated "Buy."
Citigroup released a research report stating that it has lowered the expected core net profit forecast for BUD APAC (01876) for 2026 to 2028 by 2%, mainly due to a 1% reduction in revenue forecast, reflecting weaker-than-expected business performance in China in the second quarter of 2026. As the company is expected to be unable to maintain its absolute per-share dividend levels in 2027, the forecast for per-share dividends for 2026 to 2028 has been repriced, assuming a payout ratio of 100%. The target price has been adjusted down from HKD 10.9 to HKD 10.8. It reiterates the ranking of the Chinese beer industry as CHINA RES BEER (00291) > BUD APAC > Tsingtao Brewery (00168). All three are rated "Buy."
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HK Stock Market Move | The decline in storage concepts is significant, and the revenue guidance from US storage giants falls short of expectations, resulting in a transmission of sluggish sentiment to the Asia-Pacific market.
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