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Budweiser Brewing Co. APAC Ltd. (HK:1876)
:1876
Hong Kong Market
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Budweiser Brewing Co. APAC Ltd. (1876) AI Stock Analysis

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HK

Budweiser Brewing Co. APAC Ltd.

(1876)

Rating:70Outperform
Price Target:
HK$9.00
▲(9.22%Upside)
Budweiser Brewing Co. APAC Ltd. displays strong financial health with robust profitability and cash flow stability, which is the primary strength. The valuation is also favorable due to an appealing dividend yield. However, the lack of strong market momentum and declining revenue growth are notable risks that temper the overall score.
Positive Factors
Brand and Product Focus
There is an ongoing focus on Budweiser and Core++ brands, positioning the company for recovery in the second half of the year.
China Operations Improvement
China operations are expected to improve sequentially with lower channel inventory and expansion of in-home consumption.
Market Share Gains
Budweiser APAC is achieving continued market share gains in South Korea, with successful product innovations.
Negative Factors
China Market Challenges
Weak consumer sentiment in China resulted in a decline in beer production, impacting sales volume negatively.
Financial Performance Decline
Earnings for FY25/FY26F have been reduced by 12%/17% due to ongoing weaknesses in China stemming from unfavorable channel and geographic mix.
Volume and Pricing Pressure
There is continued pressure on volume and short-term ASP impacts from channel shifts.

Budweiser Brewing Co. APAC Ltd. (1876) vs. iShares MSCI Hong Kong ETF (EWH)

Budweiser Brewing Co. APAC Ltd. Business Overview & Revenue Model

Company DescriptionBudweiser 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 MoneyBudweiser 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
72
Positive
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
88
Very Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue48.51B53.54B50.73B52.76B43.34B
Gross Profit24.44B26.96B24.31B27.25B21.46B
EBITDA13.70B15.63B13.98B16.56B12.11B
Net Income5.64B852.00M7.15B7.38B3.99B
Balance Sheet
Total Assets114.78B126.76B124.85B129.61B125.53B
Cash, Cash Equivalents and Short-Term Investments22.27B24.53B19.71B15.98B10.04B
Total Debt1.58B331.00M1.75B1.58B1.82B
Total Liabilities35.25B42.04B40.30B43.21B42.23B
Stockholders Equity79.10B84.22B84.01B85.86B82.85B
Cash Flow
Free Cash Flow5.86B10.28B8.48B10.08B6.15B
Operating Cash Flow8.81B14.18B12.35B14.79B10.09B
Investing Cash Flow-3.18B-3.50B-3.45B-5.68B-4.56B
Financing Cash Flow-7.01B-4.86B-3.92B-3.61B-3.23B

Budweiser Brewing Co. APAC Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.24
Price Trends
50DMA
8.15
Positive
100DMA
8.21
Positive
200DMA
7.84
Positive
Market Momentum
MACD
0.06
Negative
RSI
57.97
Neutral
STOCH
67.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1876, the sentiment is Positive. The current price of 8.24 is above the 20-day moving average (MA) of 8.09, above the 50-day MA of 8.15, and above the 200-day MA of 7.84, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 67.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1876.

Budweiser Brewing Co. APAC Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
HK$108.64B19.606.94%5.33%-9.19%-14.90%
65
Neutral
$26.91B15.41-4.18%3.21%1.01%1.34%
$11.16B16.8215.25%3.12%
$10.81B13.8114.90%4.71%
76
Outperform
HK$459.42B34.9539.94%2.05%-1.32%-1.49%
60
Neutral
HK$384.78M4.08-2.97%4.85%-4.11%-123.40%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1876
Budweiser Brewing Co. APAC Ltd.
8.42
-1.27
-13.11%
CRHKF
China Resources Beer (Holdings) Co
3.42
-0.06
-1.72%
TSGTF
Tsingtao Brewery Co
6.25
-0.05
-0.79%
HK:9633
Nongfu Spring Co., Ltd. Class H
41.45
6.85
19.80%
HK:0236
San Miguel Brewery HK Ltd.
1.00
-0.03
-2.91%

Budweiser Brewing Co. APAC Ltd. Corporate Events

Budweiser Brewing Co. APAC Ltd. Updates Nomination Committee Terms
Jul 18, 2025

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
Jul 18, 2025

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.

Budweiser APAC Faces Legal Challenges in Korea
Jun 27, 2025

Budweiser Brewing Company APAC Limited announced that an employee of its subsidiary, Oriental Brewery Co. Ltd. (OB), has been indicted in Korea for embezzlement and commercial bribery, along with customs tax evasion related to malt importation. The company, along with OB and its executives, plans to defend against the charges, and the potential financial impact is not expected to be significant for the company overall.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$16.40 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. Announces Board Composition
May 15, 2025

Budweiser Brewing Co. APAC Ltd. has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive members. The board’s structure is designed to enhance governance and strategic oversight, with three key committees focused on audit and risk, remuneration, and nominations. This announcement reflects the company’s commitment to robust corporate governance, which is crucial for maintaining stakeholder confidence and ensuring sustainable growth in the competitive beverage industry.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$14.90 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 Announces Board Reshuffle to Strengthen Leadership
May 14, 2025

Budweiser Brewing Company APAC Limited announced several changes in its board of directors effective from May 15, 2025. Mr. Ricardo Tadeu will join as a Non-executive Director, while Ms. Katherine Barrett will transition from a Non-executive Director to an alternate Director. Additionally, Mr. John Blood and Mr. David Almeida will take on new roles as alternate Directors to multiple board members. These changes are part of the company’s strategic adjustments to strengthen its leadership and governance structure.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$16.40 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 Declares Final Dividend for 2024
May 14, 2025

Budweiser Brewing Company APAC Limited has announced a final ordinary cash dividend of USD 0.0566 per share for the financial year ending December 31, 2024. The dividend, payable in Hong Kong dollars at a rate of HKD 0.4396 per share, reflects the company’s commitment to returning value to its shareholders. The ex-dividend date is set for May 21, 2025, with payment scheduled for June 25, 2025. This announcement underscores the company’s stable financial performance and its strategic focus on maintaining shareholder confidence.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$16.40 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. Approves Key Resolutions at AGM
May 14, 2025

At the Annual General Meeting held on May 14, 2025, Budweiser Brewing Co. APAC Ltd. announced that all proposed resolutions were approved by a majority vote. Key resolutions included the approval of the audited financial statements, the declaration of a final dividend of US$5.66 cents per share, and the re-election of several directors. Additionally, the company re-appointed PricewaterhouseCoopers as its independent auditors and authorized the board to repurchase shares and issue additional shares. These decisions are likely to impact the company’s financial strategies and shareholder value positively.

The most recent analyst rating on (HK:1876) stock is a Buy with a HK$16.40 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 Reports Decline in Q1 2025 Financial Results Amidst Challenging Market Conditions
May 7, 2025

Budweiser Brewing Company APAC Limited reported a decline in its financial performance for the first quarter of 2025, with revenue dropping by 7.5% and normalized EBITDA decreasing by 11.2%. This downturn was largely attributed to a challenging market environment in China, although the company noted strong performance in South Korea. The CEO emphasized the company’s strategic focus on adapting to market conditions and leveraging its brand portfolio to drive future growth.

Budweiser APAC to Announce Q1 2025 Financial Results
Apr 23, 2025

Budweiser Brewing Company APAC Limited has announced that a board committee meeting will be held on May 7, 2025, to approve the unaudited financial results for the first quarter of 2025. The results are expected to be released on May 8, 2025, which could provide insights into the company’s financial performance and impact its market positioning.

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.Date of analysis: Jul 08, 2025