Citi Trims BUD APAC Target to HK$10.8, Cuts Earnings Estimates

Stock News08-04

Citi has released a research note indicating it has trimmed its core net profit forecasts for BUD APAC (01876) for the 2026 to 2028 period by 2%. This reduction is primarily driven by a 1% downward revision to its revenue forecasts, reflecting a weaker-than-expected performance in the second quarter of 2026 within the Chinese market.

Given the expectation that the company may not sustain its absolute dividend per share level in 2027, Citi has rebased its dividend per share forecasts for the 2026 to 2028 period, assuming a 100% payout ratio. Consequently, the target price has been lowered to HK$10.8 from HK$10.9.

The bank reiterated its ranking within the Chinese beer sector, placing China Resources Beer (00291) ahead of BUD APAC, which is then followed by Tsingtao Brewery (00168). All three stocks maintain a "Buy" rating.

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