Nomura has released a research report stating that it expects Bud APAC (01876) to post another weak performance in the third quarter, with continued deterioration in the China market and lackluster growth momentum in the South Korea market, partly offset by sustained rapid growth in the India market.

The brokerage has lowered its target price for the company from HK$8.6 to HK$7.8 while maintaining its Buy rating, believing that the current valuation is not expensive.

The bank forecasts that Bud APAC's third-quarter revenue and normalized EBITDA will decline by 9% and 20% year-on-year respectively, and as no turnaround is in sight in the near term, the trend of weak sales and EBITDA growth is expected to persist into the fourth quarter.