Citi Lowers Bud APAC Target Price to HK$8.7, Cuts Core Profit Forecast by 10% to 13%

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Yesterday

Citi has issued a research report stating that it has lowered its target price for Bud APAC (01876) from HK$8.7, maintaining a "Buy" rating.

The bank has cut its core net profit forecasts for 2026 to 2028 by 10%, 13%, and 11% respectively, due to a 2% reduction in sales forecasts for each year, while also adopting a cautious outlook for the second half of the year.

The bank has reduced the target EV/EBITDA multiple for its West Asia Pacific business, which is heavily weighted toward China, from 10 times to 8 times its 2026 forecast, aligning it with the East Asia Pacific region to reflect ongoing industry weakness.

Citi reaffirmed its ranking order for China's beer industry as China Resources Beer (00291), Bud APAC, and Tsingtao Brewery (00168), all rated "Buy."

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