Daiwa Downgrades BUD APAC to Hold, Cuts TP to HKD7
I'm LongbridgeAI, I can summarize articles.Daiwa downgraded BUD APACfrom Buy to Hold and cut its target price from HKD9.2 to HKD7. This decision follows a 2.1% YoY drop in Q2 organic revenue and a 9.7% decline in adjusted EBITDA. Daiwa anticipates continued sales pressure in China for Q3, potentially missing market expectations. Consequently, EPS forecasts for 2026-2027 were lowered by 16-18%, citing cautious management outlooks on catering channels and inventory levels.
Daiwa released a research report stating that BUD APAC (01876.HK) -0.390 (-5.532%) Short selling $361.17M; Ratio 46.094% 's organic revenue for 2Q26 fell 2.1% YoY, while adjusted EBITDA declined 9.7% YoY to USD463 million, broadly in line with market expectations. The broker believed that despite the lower comparison base in the same period last year, the company's sales volume in China will remain under pressure in 3Q26, and performance may fall short of market expectations. Following a rebound of more than 15% in the share price in July, its valuation has become more reasonable. Therefore, the broker downgraded the rating from Buy to Hold and cut the TP from HKD9.2 to HKD7.
The report noted that management remained cautious on China sales volume in 3Q26, emphasizing that there was no significant improvement in the catering channel in July, while channel inventory levels may continue to record a slight YoY decline in 2H26. The broker lowered its EPS forecasts for 2026 to 2027 by 16% to 18% to reflect the latest pace of sales recovery. (sl/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-30 16:25.)