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Budweiser Brewing Co. APAC Ltd.
(1876)
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Rating:64Neutral
Price Target:
HK$6.50
▲(2.20% Upside)
Action:Reiterated
Date:10/31/26
The score is primarily supported by strong financial stability (very low leverage and solid margins), but is held back by weak recent business momentum and cash flow decline, plus a challenging earnings call outlook centered on China pressure and cost headwinds (including conditional dividend risk). Valuation is moderately supportive due to the high dividend yield, while technical indicators remain mixed-to-weak.
Positive Factors
Conservative balance sheet
Very low leverage gives Budweiser APAC substantial financial flexibility as it manages uneven regional demand and invests in brands, innovation, and channels. A strong equity base also reduces balance-sheet strain and supports continued operating investment through a difficult business cycle.
Negative Factors
China share and inventory pressure
China is the largest structural drag because declining volumes, market-share losses, and excess inventory can suppress sell-in, weaken utilization, and require additional brand and channel spending. Management's stabilization efforts may take time, leaving profitability and competitive position exposed over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage gives Budweiser APAC substantial financial flexibility as it manages uneven regional demand and invests in brands, innovation, and channels. A strong equity base also reduces balance-sheet strain and supports continued operating investment through a difficult business cycle.
Read all positive factors
Budweiser Brewing Co. APAC Ltd. (1876) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$77.65B
Dividend Yield7.51%
Average Volume (3M)11.96M
Price to Earnings (P/E)18.0
Beta (1Y)0.65
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. Volume12,826,320
30 Day Avg. Volume11,962,460
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$7.27Price Target Upside14.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)0.04
Revenue Forecast (FY)HK$5.72B
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:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Mar 03, 2027
Earnings Call Sentiment Negative
The call reflected a challenging overall performance, dominated by significant volume, revenue, EBITDA, margin, and market share pressure in China, as well as commodity cost headwinds and a material India receivables provision. Positive developments included South Korea market share gains and stable nine-month margins, strong India growth and market share momentum, improving in-home and O2O activity in China, and continued investment in brands and innovation. However, the scale of the China downturn and broad financial declines outweighed the positive operating momentum elsewhere.Positive Updates
Strategic Actions to Stabilize China
Management is taking targeted actions to support future volume recovery in China, including strengthening execution, shifting the channel mix toward in-home and digital channels, expanding O2O penetration, and continuing to invest behind mega brands and innovations.
Negative Updates
Nine-Month Volume, Revenue, EBITDA, and Margin Declines
For the first 9 months of 2026, total volumes decreased by 4.9%, revenue decreased by 3.7%, normalized EBITDA decreased by 13.2%, and normalized EBITDA margin contracted by 297 basis points.
Read all updates
Q3-2026 Updates
Positive
Negative
Strategic Actions to Stabilize China
Management is taking targeted actions to support future volume recovery in China, including strengthening execution, shifting the channel mix toward in-home and digital channels, expanding O2O penetration, and continuing to invest behind mega brands and innovations.
Read all positive updates
Company Guidance
Management said October so far “seems to remain challenging,” with “still some impact at least in the short term” from China inventory and “more work to do”; China’s strategy is to stabilize volumes and share while “increasing investments overall,” including in Core+, Premium, O2O and in-home occasions, and O2O is expected to “keep growing.” Commodity costs are expected to create “some cost headwinds” in “this quarter and next year,” with aluminum at “$3,000 per ton,” approximately “10% year-to-date” or “20% if you compare to last year,” under a “12-month hedging policy.” In South Korea, management expects the industry to be “slightly negative, low single digits in the future,” with “some cost headwinds in South Korea” in “Q4 and next year,” but has “nothing at this moment to announce regarding pricing.” Management said it does not expect “further meaningful one-offs” in India, while noting that if results “remain challenging and do not improve,” it becomes “increasingly difficult to maintain the same dividend,” although “there hasn’t been any decision yet.”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 | 11.64B | 12.11B | 13.73B | 15.50B | 14.61B | 16.40B |
| 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
Neutral
6.36
Price Trends
5.95
Negative
6.23
Negative
6.72
Negative
Market Momentum
-0.03
Positive
49.39
Neutral
24.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1876, the sentiment is Neutral. The current price of 6.36 is above the 20-day moving average (MA) of 5.85, above the 50-day MA of 5.95, and below the 200-day MA of 6.72, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 24.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$67.62B | 15.82 | 13.77% | 6.77% | 1.15% | 0.86% | |
69 Neutral | HK$388.51M | 10.55 | 5.16% | 5.77% | -8.21% | ― | |
64 Neutral | HK$77.65B | 18.01 | 5.51% | 7.51% | -2.79% | -6.76% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | HK$64.14B | 19.28 | 9.57% | 5.84% | 2.71% | -48.12% | |
62 Neutral | HK$200.00M | 3.60 | 15.43% | ― | -4.14% | 0.91% | |
46 Neutral | HK$163.38M | 26.98 | 1.80% | 2.76% | -49.66% | -73.78% |
* Consumer Defensive Sector Average
HK:1876
Budweiser Brewing Co. APAC Ltd.
5.89
-1.53
-20.58%
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Budweiser Brewing Co. APAC Ltd. Corporate Events
Budweiser APAC Warns on Unaudited Results as China Weakness Hits 9M 2026 Earnings
Oct 28, 2026
Budweiser Brewing Company APAC Limited reported unaudited results for the nine months to 30 September 2026, showing weaker performance driven largely by softness in China due to adverse weather and on-premise weakness. The company cautioned invest...
Budweiser APAC Sets Date to Approve Nine-Month Unaudited Results
Oct 15, 2026
Budweiser Brewing Company APAC Limited has scheduled a meeting of a board committee for October 28, 2026, after trading hours, to review and approve the unaudited financial results for the nine months ended September 30, 2026. The company plans to...
Budweiser APAC Flags Tax Hit and India Provision to Weigh on Q3 Profit
Oct 4, 2026
Budweiser Brewing Company APAC has disclosed that an internal restructuring of several Chinese Mainland subsidiaries, including Anheuser-Busch InBev Sedrin Brewery, will result in a non-underlying withholding tax charge of about US$52 million, aim...
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.