Core Viewpoint - UBS reports that Budweiser APAC (01876) is expected to see a decline in revenue and adjusted EBITDA for Q3 2025, with figures of $1.555 billion and $438 million respectively, representing year-on-year decreases of 8.8% and 8.6%, which are slightly below UBS's expectations by 1-3% but generally in line with market expectations [1] Financial Performance - Revenue for Q3 2025 is projected at $1.555 billion, down 8.8% year-on-year [1] - Adjusted EBITDA for Q3 2025 is projected at $438 million, down 8.6% year-on-year [1] Earnings Forecast - UBS has lowered its earnings forecasts for Budweiser APAC for 2025 to 2027 by 7% to 9% due to ongoing weakness in the Chinese market and limited visibility for Q4 [1] - The anticipated recovery is expected to be delayed until 2026 [1] Investment Rating - UBS maintains a "Buy" rating for Budweiser APAC, citing the ongoing premiumization in household channels, attractive valuations, and robust cash reserves that support stable dividends in 2025 [1] - The target price has been adjusted from HKD 9.07 to HKD 8.75 [1]

Core Viewpoint - UBS reported that Budweiser APAC's Q3 revenue and adjusted EBITDA were $1.555 billion and $438 million, representing year-on-year declines of 8.8% and 8.6%, respectively, which were below the bank's expectations by 1% to 3% but generally in line with market expectations [1] Financial Performance - Q3 revenue was $1.555 billion, down 8.8% year-on-year [1] - Adjusted EBITDA for Q3 was $438 million, down 8.6% year-on-year [1] Earnings Forecast - UBS has lowered Budweiser APAC's earnings forecasts for 2025 to 2027 by 7% to 9% due to the ongoing weakness in the Chinese market and limited visibility for Q4 [1] - The expected recovery is now anticipated to be delayed until 2026 [1] Investment Rating - UBS maintains a "Buy" rating for Budweiser APAC, citing the ongoing premiumization in household channels, attractive valuations, and robust cash reserves that support stable dividends through 2025 [1] - The target price has been reduced from HKD 9.07 to HKD 8.75 [1]

Core Viewpoint - The report from Credit Lyonnais indicates that Budweiser APAC's Q3 performance slightly exceeded expectations, primarily driven by stronger-than-expected growth in the South Korean market, while the Chinese market remains under pressure. The future outlook hinges on the potential recovery of the Chinese market in the coming year, with uncertainties surrounding consumer sentiment and market competition leading to low visibility for recovery [1] Revenue and Profit Forecasts - Credit Lyonnais has revised Budweiser's revenue forecasts for 2025 to 2027 down by 1.3%, 2%, and 3% respectively, and profit forecasts down by 0.3%, 9.8%, and 11% [1] - The target price has been adjusted from HKD 9.3 to HKD 9, while maintaining an "outperform" rating [1] Market Performance Insights - The Chinese market is expected to continue dragging down overall sales and profit margins in Q4 [1] - The South Korean market is benefiting from price increases and product mix upgrades, which are anticipated to sustain growth [1]

Market Overview - The Hang Seng Index is expected to fluctuate around 26,000 points due to the Federal Reserve's hawkish stance on interest rate cuts and ongoing uncertainties in the US-China trade relations [2][7] - The third quarter economic performance in mainland China has shown further cooling, prompting the government to focus on expanding domestic demand and promoting technological self-reliance [2][4] Company Performance - Industrial and Commercial Bank of China (ICBC) reported a quarterly profit of 100 billion RMB, while China Construction Bank (CCB) and Agricultural Bank of China (ABC) also showed profit increases of 4.2% and 3.7% respectively [12] - AIA Group's new business value rose by 25% in the last quarter, reaching a record high for Q3, driven by growth in markets including Hong Kong and mainland China [12] - China Life Insurance's new business value increased by nearly 42% in the first three quarters, with a significant profit growth of 91.5% in Q3 [12] - China Petroleum and Chemical Corporation (Sinopec) reported a 12% decline in profit for the third quarter, reflecting challenges in the oil market [5][12] Economic Indicators - The US Federal Reserve cut interest rates by 0.25%, bringing the target range to 3.75% to 4.00%, with indications that further cuts are uncertain [5][7] - The G7 is planning to establish a critical minerals alliance to counter China's dominance in key sectors such as AI and electric vehicles [10][12] - The People's Bank of China is accelerating the implementation of policies related to "Artificial Intelligence + Finance" to enhance the digital transformation of the financial sector [10][12] Sector Focus - The insurance sector in mainland China is seeing improved investment returns due to strong performance in the A-share market [8] - The AI sector is experiencing rapid advancements, particularly in chip development, as the government promotes the application of AI technologies [8][10]

Market Overview - The Hong Kong stock market is expected to consolidate as positive sentiment from the recent US-China summit fades, with the Hang Seng Index closing at 26,282.69, down 0.24% [2][3] - The trading volume for the day was 353.8 billion HKD, indicating a moderate level of market activity [3] Macro & Industry Dynamics - The Hong Kong Monetary Authority (HKMA) is set to announce a new financial technology development blueprint, aiming to keep Hong Kong at the forefront of fintech innovation [6] - The HKMA emphasizes the importance of a robust financial infrastructure, likening it to a highway for efficient capital flow, and plans to explore Central Bank Digital Currency (CBDC) and next-generation data infrastructure [6][7] - Recent adjustments in interest rates by major banks in Hong Kong, including HSBC and Standard Chartered, reflect the US Federal Reserve's rate cuts, with HSBC lowering its best lending rate by 0.125% to 5% [8] Company News - Standard Chartered reported a 2.56% year-on-year increase in pre-tax profit for Q3, amounting to 1.766 billion USD, with a focus on cross-border and wealth banking services driving growth [10] - The bank has raised its tangible shareholder equity return guidance for 2025 to approximately 13%, ahead of schedule, and expects revenue growth to approach the upper limit of 5% to 7% [11] - Budweiser APAC's Q3 net profit fell by 7.96% year-on-year to 185 million USD, with revenue declining by 8.8% to 1.555 billion USD, primarily due to challenges in the Chinese market [12]

Core Viewpoint - The company reported weak performance in the Chinese market for Q3 2025, with a focus on addressing challenges in the on-premise channel and inventory management [1][5][17] Financial Performance - In Q3 2025, the company's sales in China decreased by 11.4%, and revenue fell by 15.1%, with revenue per hectoliter down by 4.1% due to increased investment in innovative products and brand promotion [5][17] - For the first nine months of 2025, sales in China decreased by 9.3%, while revenue and revenue per hectoliter decreased by 11.3% and 2.2%, respectively [5][17] - Overall, for the first nine months of 2025, the company's total sales decreased by 7.0%, and revenue decreased by 6.6%, with revenue per hectoliter increasing by 0.4% [17] Market Strategy - The company aims to restore growth and rebuild market share by focusing on improving market channel execution and product mix [2][5] - There is a significant shift towards home consumption, with the company increasing its investment in family consumption channels and e-commerce [9][11] - The company has introduced new packaging formats, such as larger cans, to cater to the home consumption trend [9][11] Inventory Management - The company has actively managed its inventory, reporting that inventory levels and turnover days are lower than the previous year and below industry averages [8][11] Brand Development - The company is focusing on the Harbin brand as a core product line and expanding its presence in both on-premise and home consumption markets [14][16] - The company believes that the Harbin brand has strong potential to compete regionally, especially in traditional strongholds [14][16] Future Outlook - The company anticipates continued growth in the home consumption channel, driven by rising disposable incomes and market maturity [13] - The company is optimistic about expanding its non-on-premise sales to align more closely with industry averages [13]

Core Insights - The liquor market is currently facing challenges, with traditional liquor brands struggling to connect with younger consumers while beer companies grapple with cost and pricing issues [1][3][5] - The entry of Mixue Ice City into the beer market with low-priced fresh beer is reshaping consumer expectations and market dynamics [7][13][15] Industry Challenges - Traditional liquor consumption has shifted from social bonding to a preference for personal enjoyment, leading to a decline in white liquor sales among younger demographics [3][5] - Beer companies are caught in a dilemma of needing to lower prices to attract customers while facing thin profit margins [5][11] Mixue Ice City's Strategy - Mixue Ice City has successfully leveraged its resources and understanding of consumer needs to introduce fresh beer at a competitive price of 5 yuan, revitalizing the market [7][9][11] - The company has established a robust supply chain and logistics network, allowing for efficient distribution of fresh beer alongside its existing beverage offerings [9][11] Market Disruption - The introduction of low-priced fresh beer is not only altering beer pricing but also changing overall consumer purchasing logic, as Mixue Ice City expands its product offerings to include snacks and other complementary items [13][15][17] - The company's approach emphasizes value for money, appealing to consumers who prioritize cost-effectiveness over brand prestige [15][17] Future Implications - The success of Mixue Ice City may signal a broader shift in consumer behavior across various industries, challenging brands that rely on traditional marketing and high pricing strategies [17] - The potential for further market disruption exists, as Mixue Ice City plans to expand its presence and possibly lower prices even further, impacting the pricing strategies of established beer brands [15][17]

Core Viewpoint - Morgan Stanley reports that Budweiser APAC (01876) third-quarter sales met expectations, while EBITDA performance exceeded concerns [1] Group 1: Sales Performance - In Q3 2025, Budweiser APAC's sales decreased by 8.4%, with a slight increase in average selling price by 0.1% and a year-on-year volume decline of 8.6% [1] - The Chinese market continues to face pressure, while the South Korean market shows stable performance [1] Group 2: EBITDA and Profitability - The standardized EBITDA margin in Q3 2025 saw an organic growth of 46 basis points to 28.2% [1] - For the first nine months of 2025, the gross margin increased organically by 42 basis points, while the EBIT margin decreased organically by 46 basis points [1] Group 3: Regional Performance - In the Asia Pacific West region, Q3 2025 organic sales fell by 12.0%, with volume down 9.9% and average selling price down 2.4%, leading to a standardized EBITDA decline of 11.9% [1] - In the Asia Pacific East region, Q3 2025 organic sales grew by 3.9%, with volume down 0.6% but average selling price up by 4.5%, resulting in a standardized EBITDA increase of 8.7% [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 Budweiser Brewing Company APAC Limited 百威亞太控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1876） 持續關連交易 關於 (1)綜合服務框架協議； 及 (2)策略、採購及行政服務 吾等提述百威亞太控股有限公司（「本公司」）日期為2019年9月18日的招股章程 （「招股章程」）中「關連交易 － 非豁免持續關連交易」一節及本公司日期為2022 年3月28日的公告，內容有關（其中包括）(i)採購服務框架協議；(ii)策略服務框 架協議；及(iii)本公司與Anheuser-Busch InBev SA/NV（「百威集團」）訂立的綜 合服務框架協議及其項下擬向本集團提供的策略服務、採購服務及行政服務。 除另有指明外，本公告所用詞彙與招股章程所界定者具有相同涵義。 綜合服務框架協議 於2025年10月29日，本公司與百威集團訂立有關綜合服務框架協議的重訂函， ...

Core Insights - Goldman Sachs reports that Budweiser APAC (01876) showed strong revenue performance in the Asia-Pacific East region for Q3, with organic revenue growth of 3.9% and organic EBITDA growth of 8.7%, surpassing the bank's expectations of 1.1% and 7.0% respectively [1] - The company maintains a "Buy" rating with a target price of HKD 8.9 [1] Group 1: Financial Performance - For Q3 2025, Budweiser APAC's organic sales decreased by 8.4%, better than Goldman Sachs' forecast of a 12.6% decline; standardized EBITDA was USD 438 million, with an organic decline of 6.9%, outperforming the expected USD 401 million (15.8% decline) [1] - The standardized EBITDA margin was reported at 28%, compared to the expected 26.9% [1] - Group-level organic EBIT fell by 6.1%, while standardized net profit was USD 204 million, a 9.3% year-on-year decline, better than the expected USD 182 million (19.1% decline) [1] - Q3 net profit was USD 185 million, down 8% year-on-year, primarily due to weak revenue [1] Group 2: Regional Performance - The Asia-Pacific West region's revenue declined by 12%, with organic EBITDA down 11.9%, outperforming Goldman Sachs' expectations of a 16.5% and 23% decline respectively [2] - In the Chinese market, organic revenue fell by 15.1% and organic EBITDA by 17.4%, better than the expected declines of 17.9% and 26% [2] - Average selling price decreased by 4.1%, with sales volume down 11.4%, although there was an expansion in household consumption, negatively impacted by brand mix due to destocking [2] - The Indian market achieved double-digit revenue growth and significant EBITDA margin expansion from a low base [2]