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2026-06-26 13:45:33 G Sachs issued a research report stating that BUD APAC (01876.HK) will announce its results for 2QFY2026 on July 30. Due to continued weak demand in China癒礎s beer industry, particularly the persistent slump in on-premise channels such as nightlife venues and catering, coupled with adverse rainfall across several core regions, the broker expects the China business to be the main drag in the second quarter. Although BUD APAC continues to expand its in-home consumption channels, it is difficult to fully offset the impact of overall soft consumer demand. G Sachs lowered its TP for BUD APAC from HKD8.8 to HKD7.6 but maintained a Buy rating. The broker expects average selling price pressure in the second quarter to ease compared with the first quarter, mainly benefiting from an improved product mix of ultra-premium offerings such as Budweiser Magnum, Corona and Harbin 1900. However, promotional activities in e-commerce and in-home channels are expected to partially offset the benefits of premiumization. Gross profit in the second quarter is likely to face pressure due to operating deleverage caused by declining sales volumes, while the premiumization shift has also raised unit cost of goods sold. In addition, EBITDA is expected to face greater pressure in the second quarter due to World Cup-related promotions, the launch of Harbin 1900, continued marketing investment in in-home channels, and a decline in other operating income related to returnable bottles. In contrast to weakness in the China market, G Sachs expects BUD APAC to deliver solid performance in India and S Korea. The India market is projected to maintain strong revenue growth driven by premiumization and industry demand. Although industry demand in S Korea remains soft, BUD APAC is benefiting from slightly better sales volume performance than the market, and a lower shipment base in the same period of 2025 due to price hikes, with sales volume expected to recover. Overall, G Sachs lowered its net profit forecasts for FY2026-FY2028 by 11% to 13% to reflect the drag from operating deleverage in Mainland China and higher selling expenses. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |