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Budweiser Brewing Co. APAC Ltd. (HK:1876)
:1876
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Budweiser Brewing Co. APAC Ltd.
(1876)
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Select Model
Rating:73Outperform
Price Target:
HK$9.00
▲(15.68% Upside)
Budweiser Brewing Co. APAC Ltd. shows strong financial health with robust profitability and low leverage, which is the most significant factor in its score. However, technical indicators suggest a bearish trend, and the valuation indicates potential overvaluation despite an attractive dividend yield. The earnings call reflects challenges in China, offset by positive developments in India and South Korea.
Positive Factors
Strong Financial Health
The company's low leverage and strong profitability margins provide financial stability and resilience, supporting long-term operational and strategic initiatives.
Innovation and Market Expansion
Expanding digital platforms and product innovation enhance market reach and customer engagement, driving future growth and competitive advantage.
Growth in India and South Korea
Strong performance in these markets indicates effective strategic positioning and potential for sustained revenue growth in diverse geographic areas.
Negative Factors
Decline in China Market Performance
Significant declines in China impact overall revenue and market share, posing a challenge to the company's growth strategy in a key market.
Overall Revenue and Volume Decrease
Decreasing revenue and volume indicate challenges in maintaining growth momentum, potentially affecting long-term financial performance.
Ongoing Inventory Management Challenges
Inventory management issues in China may lead to operational inefficiencies and increased costs, impacting profitability and cash flow stability.
Budweiser Brewing Co. APAC Ltd. (1876) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$102.31B
Dividend Yield5.65%
Average Volume (3M)15.31M
Price to Earnings (P/E)22.1
Beta (1Y)1.02
Revenue Growth-9.54%
EPS Growth-27.75%
CountryHK
Employees21,000
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)0.08
Shares Outstanding13,243,397,000
10 Day Avg. Volume9,122,965
30 Day Avg. Volume15,310,689
Financial Highlights & Ratios
PEG Ratio-1.10
Price to Book (P/B)1.26
Price to Sales (P/S)2.05
P/FCF Ratio16.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$9.13Price Target Upside17.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Budweiser Brewing Co. APAC Ltd. Business Overview & Revenue Model
Company DescriptionBudweiser 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 MoneyBudweiser Brewing Co. APAC Ltd. generates revenue primarily through the sale of its alcoholic beverages across multiple markets in the Asia Pacific. The company employs a revenue model that includes direct sales to retailers, bars, and restaurants, as well as distribution through third-party wholesalers. Key revenue streams consist of domestic sales, export sales, and premium product offerings that appeal to various consumer segments. Significant partnerships with local distributors and retailers enhance market penetration and brand visibility. Additionally, the company capitalizes on seasonal promotions and events, leveraging marketing strategies that align with consumer trends to drive sales. The company's ability to innovate and expand its product lineup with new flavors and limited editions also contributes positively to its earnings.
Budweiser Brewing Co. APAC Ltd. Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| Next Earnings Date:Feb 26, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a challenging situation with significant declines in China offset by strong performances and strategic advancements in India and South Korea. The company is focused on innovation and optimizing its market presence, but faces considerable headwinds in its Chinese operations.Q3-2025 Updates
Positive Updates
Strong Performance in India
In the third quarter, India delivered double-digit revenue growth, translating into strong EBITDA performance. The Budweiser brand continued to grow ahead of the industry with the volume and revenue of the Premium and Super Premium portfolio increasing by double digits.
Innovation and Market Expansion in South Korea
South Korea's market saw success with nonalcoholic beers and flavored variants like Cass 0.0 and Cass Lemon Squeeze. The overall revenue per hectoliter grew, driven by ongoing revenue management initiatives and a positive brand mix. Cass ALL Zero was launched, emphasizing a 4 Zero concept, and the market maintained a flat volume while revenues grew by mid-single digits.
Advancements in BEES Platform
The BEES B2B wholesaler and customer engagement platform expanded to over 320 cities across China, enhancing commercial capabilities and customer relationships.
Negative Updates
Decline in China Market Performance
In China, third-quarter volumes decreased by 11.4%, and revenue decreased by 15.1%. The revenue per hectoliter decreased by 4.1%, and normalized EBITDA decreased by 17.4%, impacted by top line performance and operational deleverage.
Overall Revenue and Volume Decrease
For the first 9 months of 2025, total volumes decreased by 7%, revenue decreased by 6.6%, and normalized EBITDA decreased by 7.7%. In the third quarter, volumes and revenue decreased by 8.6% and 8.4%, respectively.
Ongoing Inventory Management Challenges
There has been a need to rightsize inventories in China, with efforts to manage inventory attentively and expectations of adjustments based on sell-out trends.
Company Guidance
During the Budweiser Brewing Company APAC Limited's 2025 nine-month results announcement call, several key metrics and strategic initiatives were discussed. For the first nine months of 2025, total volumes decreased by 7%, while revenue was down by 6.6%. However, revenue per hectoliter saw a slight increase of 0.4%. The company's normalized EBITDA decreased by 7.7%, with a contraction in the EBITDA margin by 37 basis points. In the third quarter alone, total volumes and revenue fell by 8.6% and 8.4%, respectively, but revenue per hectoliter managed a small rise of 0.1%, facilitated by positive geographic mix in India and revenue management initiatives in APAC East. Despite challenges in China, Budweiser APAC aims to reignite growth and rebuild market share by enhancing its route to market, focusing on in-home channels, and increasing investments in mega brands like Budweiser, Harbin, and Corona. Efforts in innovation and digitization, such as expanding the BEES B2B platform to over 320 cities in China, are also pivotal to their strategy. Additionally, Budweiser APAC noted strong performance in India with double-digit revenue growth and solid results in South Korea, aided by successful product innovations like Cass 0.0 and Cass ALL Zero.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.72
Positive
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.88
Very Positive
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.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.73B | 48.51B | 53.54B | 50.73B | 52.76B | 43.34B |
| Gross Profit | 23.50B | 24.44B | 26.96B | 24.31B | 27.25B | 21.46B |
| EBITDA | 12.90B | 13.70B | 15.63B | 13.98B | 16.56B | 12.11B |
| Net Income | 4.65B | 5.64B | 852.00M | 7.15B | 7.38B | 3.99B |
Balance Sheet | ||||||
| Total Assets | 14.78B | 114.78B | 126.76B | 124.85B | 129.61B | 125.53B |
| Cash, Cash Equivalents and Short-Term Investments | 2.46B | 22.27B | 24.72B | 19.71B | 15.98B | 10.04B |
| Total Debt | 307.00M | 1.58B | 331.00M | 1.75B | 1.58B | 1.82B |
| Total Liabilities | 4.41B | 35.25B | 42.04B | 40.30B | 43.21B | 42.23B |
| Stockholders Equity | 10.30B | 79.10B | 84.22B | 84.01B | 85.86B | 82.85B |
Cash Flow | ||||||
| Free Cash Flow | 6.72B | 5.86B | 10.28B | 8.48B | 10.08B | 6.15B |
| Operating Cash Flow | 9.17B | 8.81B | 14.18B | 12.35B | 14.79B | 10.09B |
| Investing Cash Flow | -2.09B | -3.18B | -3.50B | -3.45B | -5.68B | -4.56B |
| Financing Cash Flow | -7.24B | -7.01B | -4.86B | -3.92B | -3.61B | -3.23B |
Budweiser Brewing Co. APAC Ltd. Technical Analysis
Negative
7.78
Price Trends
8.21
Negative
8.26
Negative
8.11
Negative
Market Momentum
-0.12
Positive
37.89
Neutral
18.29
Positive
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 7.78 is below the 20-day moving average (MA) of 8.11, below the 50-day MA of 8.21, and below the 200-day MA of 8.11, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 37.89 is Neutral, neither overbought nor oversold. The STOCH value of 18.29 is Positive, 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$576.94B | 39.60 | 46.45% | 1.58% | 4.14% | 7.35% | |
75 Outperform | HK$83.25B | 14.09 | 14.80% | 4.53% | 1.51% | 5.50% | |
73 Outperform | HK$102.31B | 22.14 | 5.74% | 5.65% | -9.54% | -27.75% | |
69 Neutral | $84.09B | 13.44 | 16.77% | 3.48% | -0.31% | 10.85% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | HK$459.49M | ― | -1.15% | 4.07% | 2.77% | -110.76% |
* Consumer Defensive Sector Average
HK:1876
Budweiser Brewing Co. APAC Ltd.
7.78
-0.40
-4.89%
HK:0291
China Resources Beer (Holdings) Co
26.70
-2.24
-7.74%
HK:0168
Tsingtao Brewery Co
52.55
2.00
3.95%
HK:9633
Nongfu Spring Co., Ltd. Class H
52.60
20.89
65.88%
HK:0236
San Miguel Brewery HK Ltd.
1.23
0.35
39.77%
Budweiser Brewing Co. APAC Ltd. Corporate Events
Budweiser APAC Earnings Call: Growth Amidst Challenges
Oct 31, 2025
The recent earnings call of Budweiser Brewing Co. APAC Ltd. painted a mixed picture, highlighting both challenges and successes across its markets. The overall sentiment was one of cautious optimism, with significant declines in the Chinese market being offset by robust growth and strategic advancements in India and South Korea. The company emphasized its commitment to innovation and optimizing market presence despite facing considerable headwinds in China.
Budweiser APAC Recommences Framework Agreement with AB InBev
Oct 30, 2025
Budweiser Brewing Company APAC Limited has announced the recommencement of its General Services Framework Agreement with Anheuser-Busch InBev, effective from October 2025 to October 2028. The company has also set new annual caps for the fees payable for Strategic, Procurement, and Administrative Services for the years 2025 to 2027, indicating a structured approach to managing its connected transactions with its controlling shareholder, AB InBev. These transactions are classified as partially exempt continuing connected transactions under Hong Kong’s Listing Rules, highlighting the company’s compliance with regulatory requirements.
The most recent analyst rating on (HK:1876) stock is a Buy with a HK$9.40 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 Reports Decline in 2025 Nine-Month Results Amidst Regional Challenges
Oct 29, 2025
Budweiser Brewing Company APAC Limited reported a decrease in total volumes by 7.0% and revenue by 6.6% for the first nine months of 2025, primarily due to challenges in China. However, the company saw positive performance in South Korea and India, with the Budweiser brand outpacing industry growth in India. Despite a decrease in normalized EPS and EBITDA, the company is focusing on strengthening its portfolio and market strategies to capture future growth opportunities.
The most recent analyst rating on (HK:1876) stock is a Buy with a HK$9.00 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 Q3 2025 Financial Results
Oct 17, 2025
Budweiser Brewing Company APAC Limited has scheduled a board committee meeting on 29 October 2025 to approve the unaudited financial results for the nine months ending 30 September 2025. The announcement of these results is anticipated to be released on 30 October 2025, which could provide insights into the company’s financial health and market performance, potentially impacting stakeholders’ perspectives.
The most recent analyst rating on (HK:1876) stock is a Buy with a HK$9.00 price target. To see the full list of analyst forecasts on Budweiser Brewing Co. APAC Ltd. stock, see the HK:1876 Stock Forecast page.
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.