Company Coverage
Budweiser APAC (1876 HK): 1H26: Revenue In Line: ASP Supports Weaker-Than Expected Volume; EBITDA Slightly Misses; Prioritising China Volume Stabilisation
BUY (Maintained)
Current price:
Target price:
Upside:
HK$7.05
HK$9.30
+31.9%
Analyst
Analyst
Highlights
- Bud APAC’s 1H26 revenue was in line, dragged by weaker-than-expected volume but supported by ASP, while EBITDA slightly missed estimates.
- For China, volume declined by 10%, impacted by adverse weather and continued weakness in the on-premise channel, partially offset by 1% ASP growth, driven by a positive brand mix. Management reiterates that volume stabilisation remains the top strategic priority, and is committed to continued investment, which may lead to margin pressure in the near term.
- For South Korea, the company outperformed the industry in 1H26. Management observes that the beer category is gaining market share and beer-friendly occasions are gaining traction. This, in our view, creates a more favourable backdrop for the company going forward. Maintain BUY with an unchanged target price of HK$9.30.
Analysis
- 1H26 revenue in line, dragged by weaker-than-expected volume but supported by ASP; EBITDA slightly missed. Budweiser APAC (Bud APAC) reported its 2Q26 and 1H26 results. In 2Q26, revenue was US$1,678m, down 2% yoy (organic growth, same as below). This was mainly dragged by a 4% volume decline, impacted by performance in China, partially offset by growth in South Korea, while ASP grew by 2%. Normalised EBITDA was US$463m, down 10% yoy, with normalised EBITDA margin was 27.6%, down 2.3ppt yoy.
Highlights
- Bud APAC’s 1H26 revenue was in line, dragged by weaker-than-expected volume but supported by ASP, while EBITDA slightly missed estimates.
- For China, volume declined by 10%, impacted by adverse weather and continued weakness in the on-premise channel, partially offset by 1% ASP growth, driven by a positive brand mix. Management reiterates that volume stabilisation remains the top strategic priority, and is committed to continued investment, which may lead to margin pressure in the near term.
- For South Korea, the company outperformed the industry in 1H26. Management observes that the beer category is gaining market share and beer-friendly occasions are gaining traction. This, in our view, creates a more favourable backdrop for the company going forward. Maintain BUY with an unchanged target price of HK$9.30.
Analysis
- 1H26 revenue in line, dragged by weaker-than-expected volume but supported by ASP; EBITDA slightly missed. Budweiser APAC (Bud APAC) reported its 2Q26 and 1H26 results. In 2Q26, revenue was US$1,678m, down 2% yoy (organic growth, same as below). This was mainly dragged by a 4% volume decline, impacted by performance in China, partially offset by growth in South Korea, while ASP grew by 2%. Normalised EBITDA was US$463m, down 10% yoy, with normalised EBITDA margin was 27.6%, down 2.3ppt yoy.
BUY (Maintained)
Current price:
Target price:
Upside:
HK$7.05
HK$9.30
+31.9%
Analyst
Analyst
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