Budweiser Brewing Co. APAC Ltd. (1876) AI Stock Analysis

• Market Cap: HK$107.58B
• Dividend Yield: 5.44%
• Average Volume (3M): 16.84M
• Price to Earnings (P/E): 23.3
• Beta (1Y): 1.06
• Revenue Growth: -9.54%
• EPS Growth: -27.75%
• Country: HK
• Employees: 21,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.09
• Shares Outstanding: 13,243,397,000
• 10 Day Avg. Volume: 19,661,525
• 30 Day Avg. Volume: 16,836,295
• PEG Ratio: -1.10
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 16.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$9.55
• Price Target Upside: 18.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 68 Neutral
• Price Target: HK$9.00 ▲(11.39% Upside)

Budweiser Brewing Co. APAC Ltd. has a strong financial foundation with solid profitability and low leverage, which is the most significant factor in its score. However, the technical analysis indicates weak momentum and a bearish trend, which negatively impacts the score. The valuation is mixed, with a high P/E ratio but an attractive dividend yield. The absence of earnings call data and corporate events does not affect the score.

Positive Factors

Strong Profitability Margins

The company's strong profitability margins indicate effective cost management and operational efficiency, which are crucial for sustaining long-term financial health and competitiveness in the market.

Robust Balance Sheet

A robust balance sheet with low debt levels reduces financial risk and enhances the company's ability to invest in growth opportunities, ensuring long-term stability and flexibility.

Strong Cash Flow

Consistently strong operating cash flow indicates the company's ability to generate sufficient cash to fund operations, invest in growth, and provide returns to shareholders, supporting long-term financial sustainability.

Negative Factors

Declining Revenue Growth

The decline in revenue growth suggests challenges in market expansion or product demand, which could impact the company's ability to sustain its market position and financial performance over time.

Net Profit Margin Decline

A declining net profit margin can indicate rising costs or pricing pressures, which may affect the company's profitability and ability to reinvest in business growth, posing a risk to long-term financial health.

Inconsistent Free Cash Flow Growth

Inconsistent free cash flow growth can lead to uncertainty in funding future investments and dividends, potentially impacting the company's strategic initiatives and shareholder returns over the long term.

Budweiser Brewing Co. APAC Ltd. Business Overview & Revenue Model

Company Description

Budweiser Brewing Company APAC Limited, an investment holding company, produces, imports, markets, distributes, and sells beer primarily in China, South Korea, India, Vietnam, and the other Asia Pacific regions. The company offers a portfolio of approximately more than 50 beer brands, including Budweiser, Stella Artois, Corona, Hoegaarden, Cass, and Harbin. It also produces, markets, distributes, and sells ready-to-drink products, energy drinks, and spirits. The company sells its products to distributors and retailers. It operates 48 breweries. The company was incorporated in 2019 and is based in Causeway Bay, Hong Kong. Budweiser Brewing Company APAC Limited is a subsidiary of AB InBev Brewing Company (APAC) Limited.

How the Company Makes Money

Budweiser Brewing Co. APAC Ltd. generates revenue primarily through the sale of its beer products across the Asia-Pacific region. The company's revenue model is based on a combination of direct sales through retail outlets, distribution partnerships, and on-premise consumption at bars and restaurants. Key revenue streams include domestic sales in local markets and international exports within the region. The company leverages its extensive distribution network and strong brand recognition to maintain market share and drive sales. Strategic partnerships with local distributors, investment in marketing and brand promotion, and product innovation also play a significant role in its earnings growth. Additionally, the company benefits from economies of scale and cost efficiencies derived from its parent company's global operations.

Budweiser Brewing Co. APAC Ltd. Financial Statement Overview

Summary

Budweiser Brewing Co. APAC Ltd. demonstrates solid financial health with strong profitability margins and a robust balance sheet characterized by low leverage. While revenue growth has declined recently, the company continues to generate healthy cash flows and maintain financial stability. Overall, the company's financials are strong with room for improvement in revenue growth.

Income Statement

The company's revenue has shown a declining trend with a decrease from 2021 to 2024. The gross profit margin remains strong, indicating good cost management. However, the net profit margin experienced a decline in 2023, primarily due to a significant drop in net income. EBIT and EBITDA margins have been relatively consistent, showing stability in operational efficiency.

Balance Sheet

The company maintains a solid equity base with a high equity ratio, suggesting a low reliance on debt. The debt-to-equity ratio is very low, which reduces financial risk. Return on Equity (ROE) has fluctuated but remains positive, demonstrating effective use of shareholder funds.

Cash Flow

Operating cash flow is strong, consistently exceeding net income, which is a positive indicator of cash-generating ability. Free cash flow has been positive, supporting growth and potential dividends. However, the free cash flow growth rate has been inconsistent, showing potential volatility in cash generation.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.51B	53.54B	50.73B	52.76B	43.34B
Gross Profit	24.44B	26.96B	24.31B	27.25B	21.46B
EBITDA	13.70B	15.63B	13.98B	16.56B	12.11B
Net Income	5.64B	852.00M	7.15B	7.38B	3.99B
Balance Sheet
Total Assets	114.78B	126.76B	124.85B	129.61B	125.53B
Cash, Cash Equivalents and Short-Term Investments	22.27B	24.53B	19.71B	15.98B	10.04B
Total Debt	1.58B	331.00M	1.75B	1.58B	1.82B
Total Liabilities	35.25B	42.04B	40.30B	43.21B	42.23B
Stockholders Equity	79.10B	84.22B	84.01B	85.86B	82.85B
Cash Flow
Free Cash Flow	5.86B	10.28B	8.48B	10.08B	6.15B
Operating Cash Flow	8.81B	14.18B	12.35B	14.79B	10.09B
Investing Cash Flow	-3.18B	-3.50B	-3.45B	-5.68B	-4.56B
Financing Cash Flow	-7.01B	-4.86B	-3.92B	-3.61B	-3.23B

Budweiser Brewing Co. APAC Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1876, the sentiment is Negative. The current price of 8.08 is below the 20-day moving average (MA) of 8.38, below the 50-day MA of 8.44, and above the 200-day MA of 7.93, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.86 is Neutral, neither overbought nor oversold. The STOCH value of 38.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1876.

Budweiser Brewing Co. APAC Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0168	74 Outperform	84.77B	14.49	14.95%	4.55%	-0.10%	2.05%
0291	69 Neutral	89.54B	14.35	14.95%	3.37%	-0.31%	10.85%
9633	69 Neutral	603.37B	41.99	37.55%	1.55%	4.14%	7.35%
1876	68 Neutral	HK$107.58B	23.28	5.74%	5.44%	-9.54%	-27.75%
0236	64 Neutral	448.28M	-55.56	-3.06%	4.17%	2.77%	-110.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Budweiser Brewing Co. APAC Ltd. Corporate Events

Budweiser APAC Reports Decline in 2025 First Half Financials Amidst Market Challenges

Budweiser Brewing Company APAC Limited reported a decrease in its normalized EBITDA by 8.0% for the first half of 2025, primarily due to operational deleverage and increased commercial investment. The company’s revenue also saw a decline of 5.6%, with a decrease in total volumes by 6.1%, mainly impacted by challenges in China, although growth was noted in India. Despite these setbacks, the company continues to focus on disciplined execution and investment in its mega brands to drive long-term growth.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$15.40 price target. To see the full list of analyst forecasts on Budweiser Brewing Co. APAC Ltd. stock, see the HK:1876 Stock Forecast page.

Budweiser Brewing Co. APAC Ltd. Updates Nomination Committee Terms

Budweiser Brewing Co. APAC Ltd. has updated the terms of reference for its Nomination Committee, which plays a crucial role in shaping the company’s leadership. Established in 2019, the committee is responsible for guiding board composition and succession planning, ensuring the board comprises directors capable of selecting effective leaders and placing the right individuals in key managerial roles. This move is part of the company’s commitment to maintaining strong governance and leadership diversity, which is vital for its sustained success and competitiveness in the market.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$15.40 price target. To see the full list of analyst forecasts on Budweiser Brewing Co. APAC Ltd. stock, see the HK:1876 Stock Forecast page.

Budweiser APAC to Announce Half-Year Financial Results

Budweiser Brewing Company APAC Limited has scheduled a board committee meeting to approve its unaudited financial results for the first half of 2025. The announcement of these results is expected to be made public on July 31, 2025, which could have implications for the company’s market positioning and provide insights into its financial performance.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$12.80 price target. To see the full list of analyst forecasts on Budweiser Brewing Co. APAC Ltd. stock, see the HK:1876 Stock Forecast page.