Asahi Group Holdings: Strategic Growth and Shareholder Value Drive ‘Buy’ Rating

Zheng Feng Chee, an analyst from DBS, maintained the Buy rating on Asahi Group Holdings (ASBRF – Research Report). The associated price target remains the same with Yen2,200.00.

Zheng Feng Chee has given his Buy rating due to a combination of factors that highlight Asahi Group Holdings’ strategic growth initiatives and commitment to shareholder returns. The company is focusing on premiumisation and operational efficiencies to drive revenue and profit growth. Asahi’s strategy includes expanding its global brands and increasing sales in higher-value categories such as ready-to-drink beverages and non-alcoholic beers. These efforts are expected to enhance the company’s market position and financial performance.
Moreover, Asahi is committed to delivering value to its shareholders through progressive dividend growth and share buybacks. The company has projected a 6% increase in dividends for FY25, supported by a higher payout ratio and plans for share repurchases. Despite some challenges, such as potential currency fluctuations and market softness in certain regions, Asahi’s focus on cost efficiencies and premiumisation is anticipated to offset these risks, making the stock an attractive investment opportunity.