Zhongshan Securities: Budweiser APAC (01876.HK) has not seen a recovery in the Chinese market, target price adjusted to HKD 7.1.

According to the Zhitong Finance APP, China Merchants Securities has released a research report stating that Budweiser APAC (01876.HK) second-quarter performance reflects a trade-off between market share defense and profitability, with significant regional performance divergence. Total shipments fell by 4.1% year-on-year, while revenue decreased by 2.1% year-on-year, and revenue per hundred liters increased by 2.1% year-on-year. Adjusted EBITDA dropped by 9.7% year-on-year, and EBITDA profit margin narrowed by 210 basis points to 27.6%. The performance was dragged down by the Chinese market, while strong performances in South Korea and India were insufficient to drive a revaluation. The institution believes that the risk-reward balance is roughly even, maintaining a "hold" rating until an organic recovery is observed in China, with the target price lowered from HK$7.80 to HK$7.10.