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

• Market Cap: HK$113.38B
• Dividend Yield: 5.15%
• Average Volume (3M): 18.69M
• Price to Earnings (P/E): 24.5
• Beta (1Y): 1.08
• Revenue Growth: -9.54%
• EPS Growth: -27.75%
• Country: HK
• Employees: 21,000
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Beverages - Alcoholic
• EPS (TTM): 0.09
• Shares Outstanding: 13,243,397,000
• 10 Day Avg. Volume: 15,262,771
• 30 Day Avg. Volume: 18,689,734
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$9.87
• Price Target Upside: 15.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 72 Outperform
• Price Target: HK$9.50 ▲(11.24% Upside)

Budweiser Brewing Co. APAC Ltd. shows strong financial performance with solid profitability and a robust balance sheet, contributing significantly to the overall score. The technical analysis indicates a neutral trend, while the valuation is reasonable with an attractive dividend yield. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Growth Opportunities

Opportunities in China include healthy channel inventory levels ahead of Chinese New Year and geographical expansion into inland cities like Hubei and Anhui.

Market Position

Budweiser APAC is achieving continued market share gains in South Korea, with successful product innovations.

Valuation

The company maintains a BUY rating due to an undemanding valuation and a decent dividend yield.

Negative Factors

Consumer Sentiment

The company has yet to see meaningful improvement in consumer demand in China, with sustained weakness in on-premise channels.

Earnings

Earnings for FY25/FY26F have been reduced by 12%/17% due to ongoing weaknesses in China stemming from unfavorable channel and geographic mix.

Volume Pressure

There is continued pressure on volume and short-term ASP impacts from channel shifts.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	48.51B	53.54B	50.73B	52.76B	43.34B
Gross Profit	24.44B	26.96B	24.31B	27.25B	21.46B
EBITDA	13.70B	15.63B	13.98B	16.56B	12.11B
Net Income	5.64B	852.00M	7.15B	7.38B	3.99B
Balance Sheet
Total Assets	114.78B	126.76B	124.85B	129.61B	125.53B
Cash, Cash Equivalents and Short-Term Investments	22.27B	24.53B	19.71B	15.98B	10.04B
Total Debt	1.58B	331.00M	1.75B	1.58B	1.82B
Total Liabilities	35.25B	42.04B	40.30B	43.21B	42.23B
Stockholders Equity	79.10B	84.22B	84.01B	85.86B	82.85B
Cash Flow
Free Cash Flow	5.86B	10.28B	8.48B	10.08B	6.15B
Operating Cash Flow	8.81B	14.18B	12.35B	14.79B	10.09B
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 Price: 8.54
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 8.54 is above the 20-day moving average (MA) of 8.41, above the 50-day MA of 8.32, and above the 200-day MA of 7.84, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 54.65 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1876	72 Outperform	HK$113.38B	24.54	5.74%	5.15%	-9.54%	-27.75%
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
CRHKF	―	$11.86B	14.57	16.77%	2.53%	―	―
TSGTF	―	$11.06B	14.15	15.74%	4.63%	―	―
9633	69 Neutral	HK$528.13B	36.25	46.45%	1.65%	4.14%	7.35%
0236	64 Neutral	HK$440.81M	4.08	-1.15%	4.13%	2.77%	-110.76%

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.

Budweiser APAC Faces Legal Challenges in Korea

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

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

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

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

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.