HSBC: Lowered Target Price for AB InBev Asia Pacific (01876.HK) to 6.7 Hong Kong dollars, Rated "Neutral"

According to the Wisdom Financial APP, J.P. Morgan has released a research report stating that the performance of Budweiser APAC (01876.HK) in the second quarter was weaker than expected. It is predicted that organic revenue and EBITDA will decline by 1% and 8% respectively compared to the same period last year, similar to the first quarter trend. Factors such as poor weather conditions, slower-than-expected recovery in the food and beverage channel, and continued drag from the Chinese market have all had an impact. Product sales volume and average selling price are expected to decline, while expenses have increased due to World Cup promotions and new product launches, further suppressing profit margins. The bank predicts that Budweiser APAC's full-year organic sales and EBITDA will remain flat and decline by 4% respectively in 2026, with average compound annual growth rates of 3% and 5% from 2026 to 2028. Earnings per share forecasts for 2026 to 2028 have been lowered by 9%, and the target price has been revised down from 8.2 Hong Kong dollars to 6.7 Hong Kong dollars, maintaining a "neutral" rating.