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

• Market Cap: HK$104.42B
• Dividend Yield: 5.63%
• Average Volume (3M): 15.31M
• Price to Earnings (P/E): 22.6
• Beta (1Y): 1.01
• Revenue Growth: -9.54%
• EPS Growth: -27.75%
• Country: HK
• Employees: 21,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.08
• Shares Outstanding: 13,243,397,000
• 10 Day Avg. Volume: 9,122,965
• 30 Day Avg. Volume: 15,310,689
• 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$9.14
• Price Target Upside: 17.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$9.00 ▲(15.24% Upside)

Budweiser Brewing Co. APAC Ltd. shows strong financial health with robust profitability and low leverage, which is the most significant factor in its score. However, technical indicators suggest a bearish trend, and the valuation indicates potential overvaluation despite an attractive dividend yield. The earnings call reflects challenges in China, offset by positive developments in India and South Korea.

Positive Factors

Strong Financial Health

The company's low leverage and strong profitability margins provide financial stability and resilience, supporting long-term operational and strategic initiatives.

Innovation and Market Expansion

Expanding digital platforms and product innovation enhance market reach and customer engagement, driving future growth and competitive advantage.

Growth in India and South Korea

Strong performance in these markets indicates effective strategic positioning and potential for sustained revenue growth in diverse geographic areas.

Negative Factors

Decline in China Market Performance

Significant declines in China impact overall revenue and market share, posing a challenge to the company's growth strategy in a key market.

Overall Revenue and Volume Decrease

Decreasing revenue and volume indicate challenges in maintaining growth momentum, potentially affecting long-term financial performance.

Ongoing Inventory Management Challenges

Inventory management issues in China may lead to operational inefficiencies and increased costs, impacting profitability and cash flow stability.

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 alcoholic beverages across multiple markets in the Asia Pacific. The company employs a revenue model that includes direct sales to retailers, bars, and restaurants, as well as distribution through third-party wholesalers. Key revenue streams consist of domestic sales, export sales, and premium product offerings that appeal to various consumer segments. Significant partnerships with local distributors and retailers enhance market penetration and brand visibility. Additionally, the company capitalizes on seasonal promotions and events, leveraging marketing strategies that align with consumer trends to drive sales. The company's ability to innovate and expand its product lineup with new flavors and limited editions also contributes positively to its earnings.

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	2.12B	1.58B	2.05B
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: 7.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.81 is below the 20-day moving average (MA) of 7.97, below the 50-day MA of 8.06, and below the 200-day MA of 8.23, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.93 is Neutral, neither overbought nor oversold. The STOCH value of 17.54 is Positive, 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	75 Outperform	HK$80.82B	13.87	14.80%	4.65%	1.51%	5.50%
1876	73 Outperform	HK$104.42B	22.60	5.74%	5.63%	-9.54%	-27.75%
0291	69 Neutral	$84.09B	13.44	16.77%	3.45%	-0.31%	10.85%
9633	63 Neutral	HK$576.94B	39.60	46.45%	1.77%	4.14%	7.35%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0236	56 Neutral	HK$452.02M	-56.02	-1.15%	4.00%	2.77%	-110.76%

Budweiser Brewing Co. APAC Ltd. Corporate Events

Budweiser Brewing APAC Announces Board Changes

Budweiser Brewing Company APAC Limited has announced that Mr. Nelson Jamel will step down from his roles as a non-executive director and a member of the Audit and Risk Committee, effective January 1, 2026. This change is part of Mr. Jamel’s departure from the parent company, Anheuser-Busch InBev SA/NV, after a 30-year career, which may impact the company’s governance and strategic direction.

Budweiser APAC Recommences Framework Agreement with AB InBev

Budweiser Brewing Company APAC Limited has announced the recommencement of its General Services Framework Agreement with Anheuser-Busch InBev, effective from October 2025 to October 2028. The company has also set new annual caps for the fees payable for Strategic, Procurement, and Administrative Services for the years 2025 to 2027, indicating a structured approach to managing its connected transactions with its controlling shareholder, AB InBev. These transactions are classified as partially exempt continuing connected transactions under Hong Kong’s Listing Rules, highlighting the company’s compliance with regulatory requirements.

Budweiser APAC Reports Decline in 2025 Nine-Month Results Amidst Regional Challenges

Budweiser Brewing Company APAC Limited reported a decrease in total volumes by 7.0% and revenue by 6.6% for the first nine months of 2025, primarily due to challenges in China. However, the company saw positive performance in South Korea and India, with the Budweiser brand outpacing industry growth in India. Despite a decrease in normalized EPS and EBITDA, the company is focusing on strengthening its portfolio and market strategies to capture future growth opportunities.

Budweiser APAC to Announce Q3 2025 Financial Results

Budweiser Brewing Company APAC Limited has scheduled a board committee meeting on 29 October 2025 to approve the unaudited financial results for the nine months ending 30 September 2025. The announcement of these results is anticipated to be released on 30 October 2025, which could provide insights into the company’s financial health and market performance, potentially impacting stakeholders’ perspectives.