Budweiser Brewing Co. APAC Ltd. (HK:1876)
:1876
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Budweiser Brewing Co. APAC Ltd.
(1876)
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Rating:71Outperform
Price Target:
HK$9.00
â–²(21.62% Upside)
Action:Upgraded
Date:05/05/26
The score is primarily supported by strong underlying financial quality (especially the very low-leverage balance sheet and solid operating margins) and decent technical momentum. It is held back by recent revenue/earnings and free-cash-flow softening, a mixed earnings-call backdrop with clear near-term margin compression, and a relatively expensive valuation despite an attractive dividend yield.
Positive Factors
Very strong, low-leverage balance sheet
Exceptionally low leverage and a large equity base give durable financial flexibility. This supports sustained investment in routes-to-market, cushions cyclical shocks, preserves dividend capacity and leaves optionality for M&A without jeopardizing solvency over the next several quarters.
Negative Factors
Recent margin compression from higher commercial investment
Meaningful margin deterioration driven by stepped-up commercial spend to stabilize volumes reduces near‑term earnings quality. If investments take longer to convert to volume/pricing gains, margin recovery may lag, pressuring cash generation and returns for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong, low-leverage balance sheet
Exceptionally low leverage and a large equity base give durable financial flexibility. This supports sustained investment in routes-to-market, cushions cyclical shocks, preserves dividend capacity and leaves optionality for M&A without jeopardizing solvency over the next several quarters.
Read all positive factors
Budweiser Brewing Co. APAC Ltd. (1876) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$95.72B
Dividend Yield5.59%
Average Volume (3M)15.31M
Price to Earnings (P/E)40.3
Beta (1Y)0.96
Revenue Growth-7.82%
EPS Growth-32.91%
CountryHK
Employees21,000
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Alcoholic
Share Statistics
EPS (TTM)0.29
Shares Outstanding13,243,397,000
10 Day Avg. Volume9,122,965
30 Day Avg. Volume15,310,689
Financial Highlights & Ratios
PEG Ratio-0.85
Price to Book (P/B)1.26
Price to Sales (P/S)2.23
P/FCF Ratio19.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$9.00Price Target Upside21.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)0.05
Revenue Forecast (FY)HK$5.96B
Budweiser Brewing Co. APAC Ltd. Business Overview & Revenue Model
Company Description
Budweiser Brewing Company APAC Limited, an investment holding company, produces, imports, markets, distributes, and sells beer primarily in China, South Korea, India, Vietnam, and the other Asia Pacific regions. The company offers a portfolio of a...
How the Company Makes Money
Budweiser Brewing Co. APAC Ltd. primarily makes money by manufacturing and selling beer to customers across Asia-Pacific. Its core revenue stream is net sales from beer sold through (1) off-trade channels such as supermarkets, convenience stores, ...
Budweiser Brewing Co. APAC Ltd. Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
Mixed results: the company achieved a return to volume growth (0.1%) and showcased strong market performance in India and rapid growth in O2O channels, along with targeted product launches and a new CFO with clear priorities. However, near-term profitability deteriorated—normalized EBITDA down 8.1% and margin contraction of 246 bps—driven by increased commercial investment and weak performance in China and Korea (China EBITDA -10.9%, Korea volumes and EBITDA down low teens). Management frames investments as temporary to rebuild volumes, leaving a balanced outlook between recovery momentum and short-term margin pressure.Positive Updates
APAC Volume Returned to Growth
Total Bud APAC volumes increased by 0.1% in Q1 2026, marking a return to positive growth after multiple quarters of decline.
Negative Updates
Revenue and Revenue per Hectoliter Decline
Consolidated revenue decreased by 0.7% and revenue per hectoliter decreased by 0.8% in Q1 2026, reflecting top-line pressure and mix/investment effects.
Read all updates
Q1-2026 Updates
Positive
Negative
APAC Volume Returned to Growth
Total Bud APAC volumes increased by 0.1% in Q1 2026, marking a return to positive growth after multiple quarters of decline.
Read all positive updates
Company Guidance
Management guided a 2026 focus on stabilizing China volumes, improving execution and delivering value while continuing to invest across channels and the premium portfolio; in Q1 APAC volumes were +0.1%, revenue -0.7% and revenue/hl -0.8%, normalized EBITDA -8.1% with normalized EBITDA margin down 246bps, China volumes -1.5%, China revenue -4.0% and revenue/hl -2.5% (China normalized EBITDA -10.9%), South Korea volumes down low‑teens with revenue down mid‑single digits but revenue/hl up low‑single digits (EBITDA down low‑teens), India delivered strong double‑digit volume and revenue growth, O2O/in‑home grew strong double‑digits, cost/hl improved ~0.8% in Q1, and management expects further 2026 investment (no price increases announced), a Korea recovery in Q2 and continued capital allocation discipline (organic investment, M&A optionality and dividend continuity — noting the recent $750m dividend / ~USD0.0566 per share).Budweiser Brewing Co. APAC Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
90
Very Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 44.94B | 48.51B | 53.54B | 50.73B | 52.76B |
| Gross Profit | 22.51B | 24.44B | 26.96B | 24.31B | 27.25B |
| EBITDA | 11.75B | 13.70B | 15.63B | 13.98B | 16.56B |
| Net Income | 3.81B | 5.64B | 852.00M | 7.15B | 7.38B |
Balance Sheet | |||||
| Total Assets | 114.99B | 114.78B | 126.76B | 124.85B | 129.61B |
| Cash, Cash Equivalents and Short-Term Investments | 22.56B | 22.27B | 24.72B | 19.71B | 15.98B |
| Total Debt | 2.16B | 1.58B | 331.00M | 2.12B | 1.58B |
| Total Liabilities | 34.60B | 35.25B | 42.04B | 40.30B | 43.21B |
| Stockholders Equity | 79.87B | 79.10B | 84.22B | 84.01B | 85.86B |
Cash Flow | |||||
| Free Cash Flow | 5.02B | 5.86B | 10.28B | 8.48B | 10.08B |
| Operating Cash Flow | 7.41B | 8.81B | 14.18B | 12.35B | 14.79B |
| Investing Cash Flow | -2.53B | -3.18B | -3.50B | -3.45B | -5.68B |
| Financing Cash Flow | -5.75B | -7.01B | -4.86B | -3.92B | -3.61B |
Budweiser Brewing Co. APAC Ltd. Technical Analysis
Neutral
7.40
Price Trends
7.13
Positive
7.24
Positive
7.47
Negative
Market Momentum
0.02
Positive
49.49
Neutral
-10.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1876, the sentiment is Neutral. The current price of 7.4 is above the 20-day moving average (MA) of 7.33, above the 50-day MA of 7.13, and below the 200-day MA of 7.47, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.49 is Neutral, neither overbought nor oversold. The STOCH value of -10.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1876.
Budweiser Brewing Co. APAC Ltd. Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$448.28M | 6.04 | 10.82% | 4.07% | 3.68% | ― | |
75 Outperform | HK$236.00M | 15.14 | 11.22% | ― | 15.66% | -1.25% | |
71 Outperform | HK$95.72B | 40.29 | 8.50% | 5.59% | -7.82% | -32.91% | |
71 Outperform | HK$82.59B | 8.15 | 15.04% | 4.69% | 1.61% | 6.76% | |
70 Outperform | HK$84.87B | 25.24 | 1.45% | 3.42% | -1.89% | -30.46% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
48 Neutral | HK$277.46M | 26.24 | 4.24% | 1.30% | -37.35% | -59.07% |
* Consumer Defensive Sector Average
HK:1876
Budweiser Brewing Co. APAC Ltd.
7.10
-0.25
-3.40%
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-5.43%
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0.21
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Budweiser Brewing Co. APAC Ltd. Corporate Events
Budweiser APAC Keeps Volumes Flat but Sacrifices Margin on China Investment Push
May 4, 2026
Budweiser Brewing Company APAC reported unaudited results for the first quarter of 2026 showing total beer volumes inching up 0.1% to 19,737 thousand hectolitres, driven by strong momentum in India and improving industry conditions in China, partl...
Budweiser APAC Proposes Final Dividend for 2025 With June Payout
Apr 22, 2026
Budweiser Brewing Company APAC Limited has recommended a final ordinary dividend of USD 0.0566 per share for the financial year ended 31 December 2025, with shareholder approval scheduled for 14 May 2026. The dividend will be paid on 24 June 2026,...
Budweiser APAC Sets Virtual AGM to Approve Dividend and Renew Capital Mandates
Apr 22, 2026
Budweiser Brewing Company APAC Limited has called its 2026 annual general meeting to be held virtually on 14 May, where shareholders will review the 2025 audited results and vote on a proposed final dividend of US$5.66 cents per share. The meeting...
Budweiser APAC Sets US$3.5 Billion Cash Pooling Limits Under Renewed Framework
Apr 21, 2026
Budweiser Brewing Company APAC has updated details of its renewed cash pooling framework, setting combined maximum daily deposit caps of US$3.5 billion for notional and physical cash pooling arrangements for each of the years 2027 to 2029. The mov...
Budweiser APAC Sets Early May Date to Approve and Release Q1 2026 Unaudited Results
Apr 17, 2026
Budweiser Brewing Company APAC Limited has scheduled a board committee meeting for 4 May 2026, after Hong Kong trading hours, to review and approve its unaudited financial results for the three months ended 31 March 2026. The company plans to rele...
Budweiser APAC renews AB InBev cash pooling deal, triggering major connected transaction review
Apr 1, 2026
Budweiser Brewing Company APAC has agreed with its controlling shareholder AB InBev to renew its participation in the group’s global cash pooling arrangements for a new three-year term from 1 January 2027 to 31 December 2029. The framework, ...
Budweiser APAC Confirms Final Equity Awards, Retains Large Incentive Headroom
Mar 27, 2026
Budweiser Brewing Company APAC has confirmed the final allocation of voluntary shares and restricted stock units under its share-based compensation plan, granting equity awards to CEO Yanjun Cheng, directors of certain subsidiaries and other emplo...
Budweiser APAC Grants Over 22 Million Share-Based Awards to Staff
Feb 16, 2026
Budweiser Brewing Company APAC has granted up to 11.6 million locked-up shares and 10.6 million restricted stock units to eligible employees under its share-based compensation plan. The awards, which allow staff to take annual bonuses in shares at...
Budweiser APAC Lifts Caps on AB InBev Import Licensing Fees
Feb 12, 2026
Budweiser Brewing Company APAC has set new annual caps on fees payable by AB InBev under existing import licensing arrangements, raising the limits to USD220 million for 2026 and USD253 million for 2027. The caps relate to an Importation Framework...
Budweiser APAC Proposes Final 2025 Dividend of USD 0.0566 Per Share
Feb 11, 2026
Budweiser Brewing Company APAC Limited has recommended a final ordinary dividend of USD 0.0566 per share for the financial year ended 31 December 2025. Key dates including the ex-dividend date, record date, payment date, and the Hong Kong dollar e...
Budweiser APAC Keeps Dividend as China Weakness Weighs on 2025 Results
Feb 11, 2026
Budweiser Brewing Company APAC Limited reported weaker financial results for 2025, with volumes down 6.0% to 79.7 million hectolitres and revenue falling 6.1% to 5.76 billion USD, largely due to underperformance in China. Normalized EBITDA decline...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.