Lyon: Downgraded Budweiser APAC (01876.HK) target price to HKD 8.7, maintaining "Outperform" rating.

Zhihong Finance APP has learned that Credit Lyonnais published a research report stating that Budweiser APAC (01876.HK) is still facing pressure in the recovery of its sales in the Chinese market, but the revenue per hectoliter and improvements in brand mix have exceeded expectations. The company continues to prioritize sales in China and increase investments, but overall macroeconomic and weather conditions have not shown favorable signs. The stock price saw significant fluctuations post-results, possibly due to earnings exceeding expectations, but management's tone regarding the outlook for the third quarter and dividend plans was relatively cautious. The bank adjusted its earnings forecast, lowering the target price from HKD 9 to HKD 8.7 and maintaining an "outperform" rating. Revenue for the second quarter rose 0.2% year-on-year to USD 1.678 billion, with organic growth down 2.1%, which was 5.2% higher than expected. Net profit fell 0.2% year-on-year to USD 256 million, exceeding the bank's and market expectations by 34%. Sales in China dropped 9.7% year-on-year, but revenue per hectoliter saw organic growth of 7.2%. Sales in South Korea remained flat year-on-year. The bank lowered its revenue forecasts for 2026 to 2027 by 0.2% to 1% and raised its net profit forecasts for 2026 to 2028 by 7% to 9%.