Budweiser Brewing Co. APAC Ltd. (1876) AI Stock Analysis

• Market Cap: HK$106.26B
• Dividend Yield: 5.45%
• Average Volume (3M): 17.63M
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.05
• Revenue Growth: -9.54%
• EPS Growth: -27.75%
• Country: HK
• Employees: 21,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.09
• Shares Outstanding: 13,243,397,000
• 10 Day Avg. Volume: 14,486,365
• 30 Day Avg. Volume: 17,632,146
• PEG Ratio: -1.10
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 2.05
• P/FCF Ratio: 16.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$9.26
• Price Target Upside: 14.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 70 Outperform
• Price Target: HK$9.00 ▲(11.66% Upside)

The overall stock score of 70 reflects strong financial performance and a solid dividend yield, offset by technical indicators suggesting a lack of upward momentum and a relatively high P/E ratio. The company's robust balance sheet and cash flow generation are significant strengths, while the recent decline in revenue growth and technical weakness are areas of concern.

Positive Factors

Strong Brand Portfolio

A diverse and well-recognized brand portfolio helps maintain market share and caters to diverse consumer preferences, supporting long-term revenue stability.

Robust Balance Sheet

A strong balance sheet with low leverage reduces financial risk and enhances the company's ability to invest in growth opportunities.

Cash Generation Ability

Strong cash flow generation supports growth initiatives and dividend payments, providing financial flexibility and stability.

Negative Factors

Declining Revenue Growth

A declining revenue trend may indicate challenges in market expansion or competitive pressures, impacting long-term growth prospects.

Net Profit Margin Decline

A declining net profit margin can affect overall profitability and may signal inefficiencies or increased costs, impacting future earnings.

Inconsistent Free Cash Flow Growth

Volatility in free cash flow growth can limit the company's ability to consistently fund operations and strategic initiatives, affecting long-term planning.

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 approximately more than 50 beer brands, including Budweiser, Stella Artois, Corona, Hoegaarden, Cass, and Harbin. It also produces, markets, distributes, and sells ready-to-drink products, energy drinks, and spirits. The company sells its products to distributors and retailers. It operates 48 breweries. The company was incorporated in 2019 and is based in Causeway Bay, Hong Kong. Budweiser Brewing Company APAC Limited is a subsidiary of AB InBev Brewing Company (APAC) Limited.

How the Company Makes Money

Budweiser Brewing Co. APAC Ltd. generates revenue primarily through the sale of its beer products across the Asia-Pacific region. The company's revenue model is based on a combination of direct sales through retail outlets, distribution partnerships, and on-premise consumption at bars and restaurants. Key revenue streams include domestic sales in local markets and international exports within the region. The company leverages its extensive distribution network and strong brand recognition to maintain market share and drive sales. Strategic partnerships with local distributors, investment in marketing and brand promotion, and product innovation also play a significant role in its earnings growth. Additionally, the company benefits from economies of scale and cost efficiencies derived from its parent company's global operations.

Budweiser Brewing Co. APAC Ltd. Financial Statement Overview

Summary

Budweiser Brewing Co. APAC Ltd. demonstrates solid financial health with strong profitability margins and a robust balance sheet characterized by low leverage. While revenue growth has declined recently, the company continues to generate healthy cash flows and maintain financial stability. Overall, the company's financials are strong with room for improvement in revenue growth.

Income Statement

The company's revenue has shown a declining trend with a decrease from 2021 to 2024. The gross profit margin remains strong, indicating good cost management. However, the net profit margin experienced a decline in 2023, primarily due to a significant drop in net income. EBIT and EBITDA margins have been relatively consistent, showing stability in operational efficiency.

Balance Sheet

The company maintains a solid equity base with a high equity ratio, suggesting a low reliance on debt. The debt-to-equity ratio is very low, which reduces financial risk. Return on Equity (ROE) has fluctuated but remains positive, demonstrating effective use of shareholder funds.

Cash Flow

Operating cash flow is strong, consistently exceeding net income, which is a positive indicator of cash-generating ability. Free cash flow has been positive, supporting growth and potential dividends. However, the free cash flow growth rate has been inconsistent, showing potential volatility in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.73B	48.51B	53.54B	50.73B	52.76B	43.34B
Gross Profit	23.50B	24.44B	26.96B	24.31B	27.25B	21.46B
EBITDA	12.90B	13.70B	15.63B	13.98B	16.56B	12.11B
Net Income	4.65B	5.64B	852.00M	7.15B	7.38B	3.99B
Balance Sheet
Total Assets	14.78B	114.78B	126.76B	124.85B	129.61B	125.53B
Cash, Cash Equivalents and Short-Term Investments	2.46B	22.27B	24.72B	19.71B	15.98B	10.04B
Total Debt	307.00M	1.58B	331.00M	1.75B	1.58B	1.82B
Total Liabilities	4.41B	35.25B	42.04B	40.30B	43.21B	42.23B
Stockholders Equity	10.30B	79.10B	84.22B	84.01B	85.86B	82.85B
Cash Flow
Free Cash Flow	6.72B	5.86B	10.28B	8.48B	10.08B	6.15B
Operating Cash Flow	9.17B	8.81B	14.18B	12.35B	14.79B	10.09B
Investing Cash Flow	-2.09B	-3.18B	-3.50B	-3.45B	-5.68B	-4.56B
Financing Cash Flow	-7.24B	-7.01B	-4.86B	-3.92B	-3.61B	-3.23B

Budweiser Brewing Co. APAC Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1876, the sentiment is Negative. The current price of 8.06 is below the 20-day moving average (MA) of 8.18, below the 50-day MA of 8.35, and above the 200-day MA of 7.98, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 55.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1876.

Budweiser Brewing Co. APAC Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0168	72 Outperform	HK$83.01B	13.91	15.74%	4.64%	2.25%	2.05%
1876	70 Outperform	HK$106.26B	23.00	5.74%	5.45%	-9.54%	-27.75%
0291	69 Neutral	$87.07B	13.92	16.77%	3.46%	-0.31%	10.85%
9633	69 Neutral	HK$598.87B	41.10	46.45%	1.56%	4.14%	7.35%
0236	64 Neutral	HK$455.76M	4.08	-1.15%	4.10%	2.77%	-110.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Budweiser Brewing Co. APAC Ltd. Corporate Events

Budweiser APAC Reports Decline in 2025 First Half Financials Amidst Market Challenges

Budweiser Brewing Company APAC Limited reported a decrease in its normalized EBITDA by 8.0% for the first half of 2025, primarily due to operational deleverage and increased commercial investment. The company’s revenue also saw a decline of 5.6%, with a decrease in total volumes by 6.1%, mainly impacted by challenges in China, although growth was noted in India. Despite these setbacks, the company continues to focus on disciplined execution and investment in its mega brands to drive long-term growth.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$15.40 price target. To see the full list of analyst forecasts on Budweiser Brewing Co. APAC Ltd. stock, see the HK:1876 Stock Forecast page.

Budweiser Brewing Co. APAC Ltd. Updates Nomination Committee Terms

Budweiser Brewing Co. APAC Ltd. has updated the terms of reference for its Nomination Committee, which plays a crucial role in shaping the company’s leadership. Established in 2019, the committee is responsible for guiding board composition and succession planning, ensuring the board comprises directors capable of selecting effective leaders and placing the right individuals in key managerial roles. This move is part of the company’s commitment to maintaining strong governance and leadership diversity, which is vital for its sustained success and competitiveness in the market.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$15.40 price target. To see the full list of analyst forecasts on Budweiser Brewing Co. APAC Ltd. stock, see the HK:1876 Stock Forecast page.

Budweiser APAC to Announce Half-Year Financial Results

Budweiser Brewing Company APAC Limited has scheduled a board committee meeting to approve its unaudited financial results for the first half of 2025. The announcement of these results is expected to be made public on July 31, 2025, which could have implications for the company’s market positioning and provide insights into its financial performance.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$12.80 price target. To see the full list of analyst forecasts on Budweiser Brewing Co. APAC Ltd. stock, see the HK:1876 Stock Forecast page.