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Budweiser Brewing Co. APAC Ltd.
(1876)
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Rating:64Neutral
Price Target:
HK$7.00
▲(10.06% Upside)
Action:Downgraded
Date:08/04/26
The score is primarily supported by strong financial resilience (very low leverage) and solid underlying margins, plus an attractive dividend yield. It is held back by weakening recent fundamentals (revenue decline, net margin and free-cash-flow pressure), a cautious earnings outlook dominated by China weakness and margin headwinds, and technicals that remain below key longer-term moving averages.
Positive Factors
Balance Sheet Strength
Very low leverage and a conservative balance sheet provide durable financial flexibility. This supports continued investment behind brands, capacity to absorb short-term shocks (eg China weakness), and preserves optionality on dividends or targeted M&A without raising default risk.
Negative Factors
China Volume and EBITDA Weakness
Sharp China volume and EBITDA declines materially depress APAC results given the market's scale. Slower on‑trade recovery and pronounced weakness in China create a structural drag that may persist for several quarters, forcing sustained investment to regain share.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage and a conservative balance sheet provide durable financial flexibility. This supports continued investment behind brands, capacity to absorb short-term shocks (eg China weakness), and preserves optionality on dividends or targeted M&A without raising default risk.
Read all positive factors
Budweiser Brewing Co. APAC Ltd. (1876) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$79.63B
Dividend Yield7.24%
Average Volume (3M)20.55M
Price to Earnings (P/E)18.7
Beta (1Y)0.93
Revenue Growth-2.79%
EPS Growth-6.76%
CountryHK
Employees20,908
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)0.33
Shares Outstanding13,243,397,000
10 Day Avg. Volume21,845,606
30 Day Avg. Volume20,554,203
Financial Highlights & Ratios
PEG Ratio-0.85
Price to Book (P/B)1.26
Price to Sales (P/S)2.24
P/FCF Ratio19.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$8.49Price Target Upside33.45% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)0.05
Revenue Forecast (FY)HK$5.84B
Budweiser Brewing Co. APAC Ltd. Business Overview & Revenue Model
Company Description
Budweiser Brewing Company APAC Limited, an investment holding company, engages in brewing and distribution of beer in South Korea, Japan, New Zealand, China, India, Vietnam, Southeast Asia, and internationally. It brews, imports, markets, distribu...
How the Company Makes Money
The company primarily makes money by selling beer and related beverage products. Revenue is generated through (1) sales to distributors/wholesalers and direct sales to retailers and on-trade accounts, with pricing and volume driven by brand positi...
Budweiser Brewing Co. APAC Ltd. Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Negative
The call showed clear operational progress in pockets — notably India (double-digit revenue growth), strong margin expansion in South Korea, and robust O2O and brand initiatives — but these positives were outweighed by pronounced weakness in China (large volume and EBITDA declines), overall APAC EBITDA contraction (-8.9%) and margin compression (-236 bps). Management is prioritizing volume stabilization in China through continued investment, accepting near-term margin pressure, while warning of delayed cost impacts from hedging and commodity inflation and potential capital allocation implications if performance does not improve.Positive Updates
India Double-Digit Revenue Growth and Share Gains
Delivered double-digit revenue growth in both Q2 and H1 2026; gained market share in operating states with share gains in Premium and Super Premium segments; EBITDA improving as investments scale the business.
Negative Updates
Continued Inventory and Distribution Adjustments
Channel inventory reduced versus prior year but management indicated inventories are not yet at ideal levels and further adjustments may be required in H2, implying continued sell-in/sell-out fragility.
Read all updates
Q2-2026 Updates
Positive
Negative
India Double-Digit Revenue Growth and Share Gains
Delivered double-digit revenue growth in both Q2 and H1 2026; gained market share in operating states with share gains in Premium and Super Premium segments; EBITDA improving as investments scale the business.
Read all positive updates
Company Guidance
Management's guidance was to prioritise stabilising China volumes and to continue investing behind brands and O2O through H2 2026 even as H1 headwinds persist: H1 APAC volumes were down 2.2%, revenue down 1.4% (revenue/hl +0.8%), normalized EBITDA fell 8.9% and normalized EBITDA margin contracted 236 bps; Q2 APAC volumes were down 4.1%, revenue down 2.1% (rev/hl +2.1%) and Q2 normalized EBITDA down 9.7%. They highlighted China Q2 volumes -9.7%, revenue -8.6%, rev/hl +1.2% and China normalized EBITDA -16.9% (with O2O delivering double‑digit growth), while South Korea saw Q2 volumes up low‑teens, rev/hl down low‑single‑digits and strong double‑digit EBITDA growth with ~400 bps margin expansion (H1 volumes flat, rev/hl up low‑single‑digits, EBITDA mid‑single‑digits) and India delivered double‑digit revenue/volume growth in Q2 and H1. Management warned of delayed gross‑margin pressure from a 12‑month hedging policy (aluminium up ~10–20% to feed through in H2 and into 2027, partly offset by barley), said China margins may remain under pressure, confirmed no immediate price hikes, may make further channel inventory adjustments (inventories are lower than a year ago but not yet at ideal), will keep investing in the short term, and reiterated capital‑allocation priorities: organic growth first, selective M&A second and shareholder returns third.Budweiser Brewing Co. APAC Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.32B | 44.86B | 48.51B | 53.54B | 50.56B | 52.92B |
| Gross Profit | 22.82B | 22.47B | 24.44B | 26.96B | 25.29B | 28.51B |
| EBITDA | 10.88B | 11.27B | 12.87B | 14.71B | 14.00B | 15.77B |
| Net Income | 4.33B | 3.81B | 5.64B | 6.65B | 7.13B | 7.41B |
Balance Sheet | ||||||
| Total Assets | 113.40B | 114.99B | 114.78B | 126.76B | 124.85B | 129.61B |
| Cash, Cash Equivalents and Short-Term Investments | 20.68B | 22.56B | 22.27B | 24.72B | 19.71B | 15.98B |
| Total Debt | 2.42B | 2.16B | 1.58B | 2.58B | 2.12B | 1.58B |
| Total Liabilities | 35.52B | 34.60B | 35.25B | 42.04B | 40.30B | 43.21B |
| Stockholders Equity | 77.45B | 79.87B | 79.10B | 84.22B | 84.01B | 85.86B |
Cash Flow | ||||||
| Free Cash Flow | 7.22B | 5.02B | 5.86B | 10.28B | 8.48B | 10.08B |
| Operating Cash Flow | 9.49B | 7.41B | 8.81B | 14.18B | 12.35B | 14.79B |
| Investing Cash Flow | -2.71B | -2.53B | -3.18B | -3.50B | -3.45B | -5.68B |
| Financing Cash Flow | -6.26B | -5.75B | -7.01B | -4.86B | -3.92B | -3.61B |
Budweiser Brewing Co. APAC Ltd. Technical Analysis
Negative
6.36
Price Trends
6.36
Negative
6.72
Negative
7.01
Negative
Market Momentum
-0.16
Positive
42.47
Neutral
28.95
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 6.36 is above the 20-day moving average (MA) of 6.20, above the 50-day MA of 6.36, and below the 200-day MA of 7.01, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 42.47 is Neutral, neither overbought nor oversold. The STOCH value of 28.95 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | HK$68.65B | 15.27 | 14.64% | 6.51% | 1.08% | 4.93% | |
69 Neutral | HK$403.46M | 10.95 | 5.16% | 5.56% | -8.21% | ― | |
64 Neutral | HK$79.63B | 18.69 | 5.51% | 7.24% | -2.79% | -6.76% | |
63 Neutral | HK$61.31B | 18.99 | 9.57% | 5.98% | 2.71% | -48.12% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | HK$218.00M | 3.85 | 15.48% | ― | -4.14% | 0.91% | |
51 Neutral | HK$225.34M | 42.56 | 1.80% | 2.19% | -49.66% | -73.78% |
* Consumer Defensive Sector Average
HK:1876
Budweiser Brewing Co. APAC Ltd.
6.12
-1.64
-21.15%
HK:0291
China Resources Beer (Holdings) Co
19.31
-7.08
-26.84%
HK:0168
Tsingtao Brewery Co
41.46
-6.44
-13.44%
HK:0236
San Miguel Brewery HK Ltd.
1.08
-0.06
-5.51%
HK:0828
Dynasty Fine Wines Group Limited
0.17
-0.13
-44.67%
HK:8509
Wine's Link International Holdings Limited
0.53
-0.19
-27.08%
Budweiser Brewing Co. APAC Ltd. Corporate Events
Bud APAC Navigates China Slowdown With Mixed First-Half 2026 Results
Jul 29, 2026
Bud APAC reported a 2.2% decline in beer volumes and a 1.4% drop in revenue for the first half of 2026, as weakness in China offset solid gains in South Korea and India. Revenue per hectoliter rose 0.8% and cost of sales fell 1.6%, but higher inve...
Budweiser APAC Sets Late-July Date to Approve First-Half 2026 Results
Jul 16, 2026
Budweiser Brewing Company APAC Limited has scheduled a board committee meeting on July 29, 2026, after market close, to review and approve its unaudited financial results for the six months ended June 30, 2026. The company plans to release the hal...
Budweiser APAC Sets Final 2025 Dividend and June Payout Timetable
May 14, 2026
Budweiser Brewing Company APAC Limited has recommended a final ordinary cash dividend of USD 0.0566 per share for the financial year ended 31 December 2025, equivalent to HKD 0.4425 per share based on an exchange rate of USD 1 to HKD 7.818158, wit...
Budweiser APAC Shareholders Approve All AGM Resolutions and Final Dividend
May 14, 2026
Shareholders of Budweiser Brewing Company APAC Limited approved all resolutions at the 14 May 2026 annual general meeting, including the receipt of the 2025 audited accounts, re-election of directors, reappointment of auditors, and authorization f...
Budweiser APAC Keeps Volumes Flat but Sacrifices Margin on China Investment Push
May 4, 2026
Budweiser Brewing Company APAC reported unaudited results for the first quarter of 2026 showing total beer volumes inching up 0.1% to 19,737 thousand hectolitres, driven by strong momentum in India and improving industry conditions in China, partl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.