On July 31, BUD APAC fell 3.83% in regular trading, trading at 6.69 HKD/share, with turnover of approximately 48.04 million HKD. The decline came one day after the company released its interim results, as the market shifted focus from the profit beat to deteriorating China fundamentals.
According to the mid-year earnings disclosed on July 30, BUD APAC reported H1 attributable profit of $473 million, up 15.6% year-over-year, with H1 revenue of $3.171 billion, down 1.4%. Total volume fell 2.2% to approximately 4.26 billion liters. Critically, Q2 group volume declined 4.1%, with China specifically seeing a near-10% volume drop. CEO Cheng Yanjun explicitly identified the China market as the primary drag on performance. The company's earlier channel partnership with Coca-Cola to penetrate lower-tier cities was described as delivering results far below expectations.
Despite the weak China data, multiple brokerages maintained positive ratings. Citi reiterated a Buy rating with a target price of 10.9 HKD, while CLSA maintained an Outperform rating, noting China business came in slightly above their estimates. Jefferies also maintained Buy with a 9 HKD target. However, market sentiment remains divided on the pace of China recovery.
Within the Brewers sector, the overall sector declined broadly. Among individual stocks, CHINA RES BEER down 4.08%, TSINGTAO BREW down 4.41%, CHINARES BEER-R down 3.97%, SAN MIGUEL HK down 2.83%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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