Budweiser Brewing APAC (1876 HK): Hold: 2Q26 preview – a mixed bag

研报英文原文证据摘录

Budweiser Brewing APAC (1876 HK): Hold: 2Q26 preview – a mixed bag

30 June 2026

Equity Research Report

Budweiser Brewing APAC EquitiesBeverages

(1876 HK)

Hold: 2Q26 preview – a mixed bag Hong Kong

◆ A softer 2Q26e, mainly due to demand weakness in China, MAINTAIN HOLD

despite strength in Korea and India

TARGET PRICE (HKD) PREVIOUS TARGET (HKD)

◆ Lower 2026-28e net profit estimates by c5% each year

7.20 8.30

◆ Maintain Hold; lower target price to HKD7.20 from HKD8.30

SHARE PRICE (HKD) UPSIDE/DOWNSIDE

A softer quarter, with China market being the main drag. We are turning more 6.32 +13.9%

cautious about the company’s 2Q26e performance, expecting muted y-o-y revenue (as of 26 Jun 2026)

growth and a low-teens EBITDA contraction. We believe operational deleverage and

MARKET DATA

rising commercial investments, such as FIFA-related marketing and channel rebates, Market cap (HKDm) 83,698 Free float 13%

are weighing more heavily on group-level EBITDA. Looking to 2Q26e, we see Market cap (USDm) 10,673 BBG 1876 HK

3m ADTV (USDm) 14 RIC 1876.HK

divergence in the performance of its two major markets: (1) APAC West. China (66%

of sales in 2025, as per the annual report) is facing greater volume pressure and FINANCIALS AND RATIOS (USD)

profitability headwinds, driven by a slower recovery in on-premises channels and Year to 12/2025a 12/2026e 12/2027e 12/2028e

HSBC QH EPS 0.04 0.05 0.05 0.05

adverse weather impacts. In contrast, India continues to act as a consistent growth HSBC QH EPS prev 0.04 0.05 0.05 0.05

driver, with the group prioritising revenue expansion over short-term profit delivery; Change (%) 0.0 -4.8 -4.6 -5.3

Consensus EPS 0.04 0.05 0.05 0.06

and (2) APAC East. Korea (21% of total sales in 2025, as per the annual report) is PE (x) 21.8 17.8 16.7 16.2