Citigroup Initiates Coverage on BUD APAC with Buy Rating, Sets HK$11.4 Price Target

Stock News05-06

Citigroup has issued a research report stating that BUD APAC's first-quarter core profit was broadly flat year-on-year at USD 234 million. This performance benefited from an effective tax rate that decreased by 2 percentage points compared to the prior year and a favorable foreign exchange impact from the Renminbi's 5% to 6% appreciation against the US dollar. Citigroup assigned a "Buy" rating to BUD APAC with a target price of HK$11.4. During the period, the group's organic volume was flat year-on-year, while organic revenue declined by 1% and normalized EBITDA decreased by 8%. In the quarter, the Asia Pacific East region, primarily South Korea, saw a 6% year-on-year decline in organic revenue. This was attributed to a 4% increase in average price being offset by a 10% decrease in volume. Volume in South Korea recorded a low double-digit percentage decline, impacted by a high base effect from pre-price hike shipments in the first quarter of the previous year.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment