Budweiser Brewing Co. APAC's China segment volume could recover in 2H, thanks to a low base, DBS Group Research analysts say in a note. China's beer production declined in April and May on weaker demand and poor weather, which the analysts say likely resulted in a midsingle-digit drop in Bud APAC's 2Q China sales volume. Still, the repositioning of some products as premium should support the brewer's average selling prices, they add. Its expanding channels and potentially warmer weather should prop up demand, too. DBS cuts its 2026-2027 earnings projections by 7%-10% on softness in Chinese sales and slower South Korea sales growth. It lowers the target price to HK$8.20 from HK$9.30 but maintains a buy rating, noting that the stock's valuation has priced in near-term weakness. Shares close at HK$6.23. (megan.cheah@wsj.com)
Dow Jones Newswires
Budweiser Brewing Co. APAC's China Volume Could Recover on Low Base — Market Talk
- Sources
- Dow Jones Newswires
- Markets
- Stocks
- Active symbols
- HKEX:1876
- Language
- English
Budweiser Brewing Co. APAC's China segment volume could recover in 2H, thanks to a low base, DBS Group Research analysts say in a note. China's beer production declined in April and May on weaker demand and poor weather, which the analysts say likely resulted in a midsingle-digit drop in Bud APAC's…