Citibank: Maintaining Budweiser Asia Pacific (01876) “Buy” Rating Target Price of HK$10.9

The Zhitong Finance App learned that Citibank released a research report saying that the second-quarter results of Budweiser Asia Pacific (01876) showed that business performance in China fell short of expectations, but business growth in South Korea and India was strong. Citibank believes that the Group's overall operations are being affected by continuing challenges in the Chinese market. In particular, the performance of the catering channel is weak, but household consumption channels are gradually improving. The Group's normalized EBITDA fell 10% year on year in the second quarter, organic sales fell 2% year on year, and EBITDA profit margin shrank 229 points year on year to 27.6% year on year. Organic sales fell 4% year on year during the period. Among them, the western Asia Pacific region fell 6%, China fell 10%, and the eastern Asia Pacific region rose 10%; the average sales price of the group rose 2% year on year, the western Asia Pacific region rose 2%, China rose 1%, and the eastern Asia Pacific region fell 2%. Citi maintains Budweiser Asia Pacific's “Buy” rating, with a target price of HK$10.9.