Investment Rating - The report maintains a rating of "Buy" for Budweiser APAC (1876.HK) [2] Core Views - The company reported a revenue of USD 3.399 billion for the first half of 2024, with an organic year-on-year decline of 4.3%. EBITDA was USD 1.1 billion, reflecting a 1.0% organic decline [6] - Strong growth in the Eastern region partially offsets pressures in the Chinese market, with Q2 revenue in the Eastern region increasing by 21.2% year-on-year [6][7] - The company continues to push its premiumization strategy, leading to an increase in average selling price despite a decline in sales volume [6][8] Financial Performance - For the first half of 2024, the company achieved a sales volume of 465.73 thousand tons, down 6.2% year-on-year, while the average price per ton increased by 2.0% [6] - The gross margin for the first half of 2024 was 51.5%, an improvement of 1.27 percentage points year-on-year, driven by cost management and declining commodity prices [6] - The company expects further improvement in profitability in the second half of 2024 due to easing raw material cost pressures [8] Regional Performance - In the Western Asia region, Q2 revenue and EBITDA declined by 13.2% and 16.3% year-on-year, respectively, with sales volume down 9.0% [6] - In the Eastern Asia region, Q2 revenue and EBITDA increased by 21.2% and 69.6% year-on-year, respectively, with sales volume up 6.0% [6][7] Earnings Forecast and Valuation - The report revises down the net profit forecast for 2024-2026 to USD 936 million, USD 1.039 billion, and USD 1.144 billion, respectively, reflecting a decrease of 10%, 12%, and 13% [8] - The current stock price corresponds to a P/E ratio of 17x for 2024, 15x for 2025, and 14x for 2026 [8]

Investment Rating - The report assigns a "Buy" rating to Budweiser APAC (1876 HK) with a target price of HKD 11.2, representing a potential upside of 19.1% from the current price of HKD 9.4 [2] Core Views - Despite a significant decline in 2Q24 performance in China due to unfavorable factors, the long-term premiumization trend in the Chinese market remains intact, with expected improvement in volume and price performance in 2H24 due to a low base [1] - Korea's 2Q24 organic revenue and normalized EBITDA showed strong growth, expected to continue in 3Q24 [1] - Budweiser APAC's 1H24 organic cost per ton decreased by 0.6% YoY, leading to a 127bps expansion in organic gross margin, with this trend expected to continue in 2H24 due to a 12-month price lock-in mechanism [1] - The company's flexible cost control measures are expected to keep the full-year expense ratio stable YoY, with normalized EBITDA likely to return to positive growth in 2H24 [1] China Market Analysis - 2Q24 organic revenue in China declined by 15.2% YoY, with volume and organic price per ton down by 10.3% and 5.4% respectively [1] - China's normalized EBITDA fell by 17.2% YoY, slightly higher than the revenue decline, reflecting the company's operational efficiency and cost control flexibility [1] - In 3Q24, volume decline in China is expected to narrow significantly due to improved weather during the peak season and a low base, with price per ton likely to return to positive growth as premium and above products recover [1] - Long-term growth potential lies in expanding distribution channels for premium and above products through the BEES platform and increasing market share in non-on-premise channels [1] Korea Market Analysis - Korea's 2Q24 volume grew by mid-single digits, with price per ton expanding by mid-teens, driving high-teens revenue growth [1] - APAC East's normalized EBITDA surged by 69.6% YoY, with normalized EBITDA margin expanding by 899bps [1] - The strong performance is attributed to a low base from the April 2023 tax hike, two price increases in 2023, improved channel and brand structure, cost control, and lower raw material prices [1] - Market share increased in both on-premise and non-on-premise channels in 2Q24, with continued strong growth expected in 3Q24 if no further tax hikes occur [1] Financial Performance and Forecast - 1H24 revenue declined by 7% YoY to USD 3,399 million, with volume down 6% and price per ton down 2% [8] - Gross margin improved to 51.5% in 1H24 from 50.9% in 1H23, driven by cost control measures [8] - Normalized EBITDA for 1H24 was USD 1,100 million, down 6% YoY, with a margin of 32.4% [8] - Full-year 2024 revenue is forecasted at USD 6,670 million, down 2.7% YoY, with normalized EBITDA expected to grow by 1% to USD 2,049 million [9] - Net profit attributable to shareholders is projected to increase by 2.6% to USD 874 million in 2024, with a net margin of 13.1% [9] Valuation - The SOTP valuation based on 2024E EBITDA suggests a target EV/EBITDA multiple of 8.0x, implying a target price of HKD 11.2 [11] - APAC East and APAC West are valued at EV/EBITDA multiples of 4.0x and 9.0x respectively [11]

Investment Rating - The report maintains a "Buy" rating for Budweiser APAC (01876.HK) with a target price of HKD 13.5 [1][2]. Core Insights - The report highlights that Budweiser APAC faced significant sales pressure in China during Q2 2024 due to adverse weather, weak consumer demand, and high base effects from the previous year. However, strong performance in South Korea and India helped mitigate some of these challenges [2][3]. - The company achieved total revenue of USD 3.4 billion in H1 2024, with a normalized EBITDA of USD 1.1 billion, reflecting a year-on-year decline of 6.2% and 4.3% respectively [1][2]. - The report anticipates a slight improvement in performance in H2 2024 due to lower base effects and ongoing strong growth in South Korea and India, despite continued challenges in the Chinese market [2][3]. Financial Summary - For H1 2024, Budweiser APAC reported total revenue of USD 3.4 billion, with a year-on-year decline of 7.3% [1]. - The normalized EBITDA for the same period was USD 1.1 billion, down 6.2% year-on-year [1]. - The normalized net profit attributable to shareholders was USD 550 million, a decrease of 4.7% year-on-year [1]. - In Q2 2024, total revenue was USD 1.756 billion, with a year-on-year decline of 10.6% [1][2]. - The normalized EBITDA for Q2 was USD 530 million, reflecting a year-on-year decline of 11.0% [1][2]. - The normalized net profit for Q2 was USD 250 million, down 8.6% year-on-year [1][2]. Regional Performance - In the Asia Pacific West region, Q2 sales in China faced significant pressure, with a year-on-year decline in both volume and price [2]. - Conversely, the Asia Pacific East region showed strong sales growth, with a 6.0% increase in volume and a 14.4% increase in price, leading to a substantial recovery in profitability [2]. - The report notes that the strong performance in India and South Korea contributed significantly to overall revenue, with the P&SP combination in India achieving double-digit growth [2]. Future Outlook - The report suggests that the operational pressure in China may ease in H2 2024 due to lower base effects and strategic initiatives to adapt to the new market conditions [2][3]. - The adjusted net profit forecasts for 2024-2026 are USD 920 million, USD 990 million, and USD 1.05 billion respectively, with corresponding PE ratios of 17, 16, and 15 [1][2].

百威亚太1H24业绩会纪要 日期：2024年8月1日 Bloomberg generated summary： Guidance The company expressed confidence in its strategy and expects to deliver stronger resultsin the medium and long term. The company mentioned that it expects the level of commercial investment as a percent ofnet revenue to be relatively stable versus last year and prior years, at a national level. Margin Story Normalized EBITDA margin increased by 109 basis points, driven by gross marginexpansion. Gross profit margin expansion contributed to a 10 ...

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） 截至2024年6月30日止六個月的 未經審核中期業績 及 2024年第二季度財務資料 百威亞太控股有限公司（「百威亞太」或「本公司」，連同其附屬公司為「本集團」）的董事 會（「董事會」）宣佈本公告隨附本集團截至2024年6月30日止六個月的未經審核業績。 董事會謹此提醒股東及潛在投資者，截至2024年6月30日止六個月的未經審核業績乃根 據本集團內部紀錄及管理賬目所編製，已經獨立核數師審閱但未經審核。 股東及潛在投資者買賣本公司證券時不應過份依賴未經審核業績並須謹慎行事。 承董事會命 百威亞太控股有限公司 聯席公司秘書 華百恩 香港，2024年8月1日 於本公告日期，本公司董事會包括聯席主席兼執行董事楊克先生、聯席主席兼非執行董事鄧明 瀟先生（Joh ...

Investment Rating - The report maintains a "Buy" rating for Budweiser APAC (1876 HK) with a target price of HK$15.20, down from HK$16.52, reflecting an 8% decrease [1][4][10]. Core Insights - The report highlights that Budweiser APAC's revenue for Q2 2024 is expected to decline by 2.3% year-on-year, primarily due to weakness in the Chinese beer market, although this is partially offset by a recovery in the South Korean market [4][5]. - The normalized EBITDA for Q2 2024 is projected to grow by 4.5%, driven by cost efficiencies and effective marketing expense management [4][5]. - The report emphasizes the need for a recovery in consumer sentiment in China, as the company's performance is significantly impacted by the sluggish beer market in the region [4][5]. Financial Summary - Revenue projections for 2024E are set at US$6,864 million, with a slight decrease of 0.6% from previous estimates [9]. - Adjusted net profit for 2024E is forecasted at US$995 million, reflecting a minor reduction of 0.3% [9]. - The report provides a detailed financial outlook, including expected EPS of US$0.07 for 2024E, unchanged from previous estimates [6][9]. Market Performance - The current stock price is HK$9.20, indicating a potential upside of 65% to the target price [2]. - The market capitalization of Budweiser APAC is reported at US$15,606 million, with a three-month average daily trading volume of US$20 million [2][3]. Regional Insights - The report notes that Budweiser APAC's sales in the Chinese market are expected to decline, while the South Korean market is anticipated to show recovery, benefiting from previous price increases and a low base effect [5][4]. - The average selling price in the South Korean market is expected to rise due to effective pricing strategies implemented in Q4 2023 [5]. Valuation - The report values Budweiser APAC at a P/E ratio of 26.0x for 2024, which is lower than the previous estimate of 28.2x, indicating a more attractive valuation compared to historical averages [10].

Investment Rating - The report assigns a positive investment rating to Budweiser APAC, highlighting its effective product upgrade strategy and leading profitability and dividend performance in the beer industry [1]. Core Insights - The report emphasizes that Budweiser APAC is at the forefront of premiumization in the Chinese beer market, which is crucial for revenue and profit growth [1][5]. - The company has demonstrated strong financial performance, with a revenue of $6.86 billion in 2023, a year-on-year increase of 5.8%, and an adjusted net profit of $920 million, up 6.8% [1][7]. - Budweiser APAC's strategy focuses on high-end beer products, which has resulted in a higher average selling price and a significant market share in China [7][9]. Summary by Sections Company Overview - Budweiser APAC, a subsidiary of Anheuser-Busch InBev, was established in 2019 and operates in key beer markets across the Asia-Pacific region, including China, Korea, India, and Vietnam [1][2]. Market Position - The company holds a 19.5% market share in China, making it a significant player in a highly concentrated market where the top five companies control 92% of the market [4][5]. - Budweiser APAC's revenue from the Chinese market grew by 12.8% in 2023, with a notable increase in profitability [7]. Financial Performance - The company reported a gross margin of 50.4% in 2023, which is the highest among its peers, and maintained a strong adjusted net profit margin of 13% [9][10]. - In Q1 2024, the gross margin improved to 51%, reflecting effective cost management and pricing strategies [9]. Product Strategy - Budweiser APAC has successfully implemented a high-end product strategy, achieving a beer price of 5,235 RMB per ton, significantly higher than competitors [5][9]. - The company has introduced innovative products, contributing to a 10% increase in sales volume for new products in 2023 [7]. Shareholder Returns - The average dividend payout ratio for Budweiser APAC is 41.5%, with a remarkable 82.2% payout ratio in 2023, surpassing its competitors [20][22]. - The company has not engaged in stock buybacks since its listing, focusing instead on returning value to shareholders through dividends [22]. Valuation - Budweiser APAC's price-to-book (PB) ratio is currently at a historical low of approximately 1.7, influenced by the overall market conditions in the Hong Kong beer sector [23].

Key Points Company and Industry Information 1. **Company Name**: Budweiser Brewing Company APAC Limited 2. **Date of Results Announcement**: 31st March 2024 3. **Hosts of the Call**: Mr. Jan Kraps, Chief Executive Officer and Co-Chair of the Board; Mr. Ignacio Larris, Chief Financial Officer 4. **Availability of Results**: Press release published earlier today, available on the Hong Kong Stock Exchange's Budweiser APAC's websites [1]. Core Views and Arguments 1. **Overall Performance**: The call will discuss the financial results for the first quarter of 2024, including revenue, earnings, and other key metrics [1]. 2. **Market Trends**: The discussion will likely cover market trends and consumer behavior in the beer industry in the APAC region [1]. 3. **Strategic Initiatives**: The company's strategic initiatives and future plans will be highlighted, including expansion into new markets and product innovation [1]. Other Important Content 1. **Press Release**: The full details of the financial results can be found in the press release published earlier today [1]. 2. **Industry Comparison**: The call may include comparisons with industry benchmarks and competitors [1]. 3. **Investor Queries**: The call will likely address investor queries and concerns regarding the company's performance and future prospects [1].

Investment Rating - The report maintains a "Buy" rating for Budweiser APAC (1876.HK) [3] Core Views - The company reported Q1 2024 revenue of $1.643 billion, with a year-on-year decline of 0.4% in organic terms; normalized EBITDA was $572 million, reflecting a 4.2% increase year-on-year; net profit attributable to shareholders was $287 million, down 3.4% year-on-year [1][2] - Revenue growth was impacted by a high base and weather conditions in the Chinese market, but the company continues to successfully implement its premiumization strategy [2] - The company expects a continued decline in costs throughout the year, driven by lower raw material prices [1] Summary by Sections Financial Performance - Q1 2024 sales volume was 2.1115 million kiloliters, down 4.8% year-on-year; average price per ton of beer increased by 4.6% [1] - Gross margin for Q1 2024 was 51.5%, up 2.06 percentage points year-on-year, primarily due to lower barley prices [1] - Normalized EBITDA margin increased by 1.53 percentage points year-on-year [1] Regional Performance - Western Asia: Q1 2024 revenue and normalized EBITDA decreased by 1.5% and increased by 2.0% year-on-year, respectively; sales volume down 4.9% [1] - Eastern Asia: Q1 2024 revenue and normalized EBITDA increased by 5.2% and 18.7% year-on-year, respectively; sales volume down 4.0% [1] Future Outlook - The company forecasts net profit for 2024-2026 to be $1.040 billion, $1.176 billion, and $1.317 billion, respectively, with corresponding EPS of 0.56, 0.63, and 0.71 RMB [2] - The current stock price corresponds to a P/E ratio of 18x, 16x, and 14x for 2024-2026 [2]

Investment Rating - The report maintains a "Buy" rating for Budweiser Brewing APAC (1876 HK) with a target price of HKD 15.60, indicating a potential upside of 36.6% from the current closing price of HKD 11.42 [1][10]. Core Insights - In Q1 2024, Budweiser experienced a decline in sales volume but an increase in average selling price (ASP), leading to better-than-expected margin expansion. Revenue showed a slight year-on-year decline of 0.4%, while ASP increased by 4.6% [1]. - The EBITDA margin improved by 153 basis points to 34.8%, driven by a 206 basis point increase in gross margin to 51.5% [1]. - The company reported a 6% decline in sales volume in the Chinese market, attributed to high base effects from the previous year and adverse weather conditions in March [1]. - South Korea emerged as a highlight with a 9.6% increase in ASP, resulting in a 5.2% increase in sales revenue and an 18.7% increase in EBITDA [1]. Financial Overview - For the fiscal year ending December 31, 2024, the projected revenue is USD 7.478 billion, reflecting a year-on-year growth of 9.1% [2][11]. - The net profit for 2024 is estimated at USD 1.105 billion, with an expected earnings per share (EPS) of USD 0.08, representing a significant growth of 29.7% compared to the previous year [2][11]. - The report highlights a consistent increase in the dividend yield, projected to reach 4.3% in 2024 [2]. Regional Performance - The Asia-Pacific regions showed a decline in sales volume, with East Asia down 4.0% and West Asia down 4.9%, but high-end product sales continued to grow, contributing positively to EBITDA [1]. - The company plans to expand its geographic footprint, increasing the number of cities covered by its brands and its B2B management platform, BEES [1]. Stock Performance - The stock has seen a significant fluctuation, with a 52-week high of HKD 22.20 and a low of HKD 9.88, indicating volatility in market performance [4].