BUD APAC(01876) 华创证券·2024-11-01 07:40Investment Rating - The report maintains a "Buy" rating for Budweiser APAC, with a target price of HKD 10, compared to the current price of HKD 8.11 [4][17]. Core Views - The company reported a total revenue of USD 5.104 billion and normalized EBITDA of USD 1.579 billion for the first three quarters of 2024, reflecting a year-on-year decline of 6.1% and 6.2% respectively. The normalized net profit attributable to the parent company was USD 777 million, down 11.6% year-on-year [1][2]. - In Q3 alone, the company achieved total revenue of USD 1.705 billion and normalized EBITDA of USD 479 million, with year-on-year declines of 9.4% and 16.6% respectively. The normalized net profit for Q3 was USD 225 million, down 25.0% year-on-year [1][2]. - The report highlights the ongoing pressure in the Chinese market due to weak sales and increased costs, while the Indian market continues to show strong growth, particularly in the premium segment [2][3]. Summary by Sections Financial Performance - For the first three quarters of 2024, Budweiser APAC's total revenue was USD 5.104 billion, with a normalized EBITDA of USD 1.579 billion, both showing a year-on-year decline of 6.1% and 6.2% respectively. The normalized net profit was USD 777 million, down 11.6% [1]. - In Q3 2024, the company reported total revenue of USD 1.705 billion and normalized EBITDA of USD 479 million, with year-on-year declines of 9.4% and 16.6% respectively. The normalized net profit for Q3 was USD 225 million, down 25.0% [1][2]. Regional Performance - In the Asia-Pacific West region, sales in China saw a year-on-year decline of 14.2% in volume and 2.1% in price, attributed to weak dining and nightlife consumption, increased competition, and a high base from the previous year. Conversely, India continued to show strong growth, particularly in high-end products [2]. - The Asia-Pacific East region experienced a recovery in sales, with a year-on-year increase of 3.9% in volume and an 11.4% increase in price, driven by increased market investment and new product launches [2]. Strategic Adjustments - The company is actively adjusting its strategy in the Chinese market by enhancing its presence in the home beverage segment and increasing investment in the mid-range price segment. The company aims to leverage its high-end brand potential, which currently has a sales share of about 17%, compared to 35% in many mature markets [2][3]. - In South Korea, the company plans to increase prices for high-end products by 8.1% starting November 1, which is expected to support profit growth in the coming year [2].