CLSA has released a research report noting that Bud APAC (01876) continues to face pressure on sales volume recovery in the Chinese market, but the improvement in revenue per hectoliter and brand mix exceeded expectations. The company continues to prioritize Chinese sales volume, increasing investment, though overall macroeconomic and weather conditions remain unfavorable. Post-earnings share price volatility may be due to earnings exceeding expectations, but management's outlook for the third quarter and dividend plans has been relatively cautious.

The firm adjusted its earnings forecasts, lowering the target price from HK$9 to HK$8.7, while maintaining an "Outperform" rating. In the second quarter, revenue rose 0.2% year-on-year to US$1.678 billion, with organic growth down 2.1%, which was 5.2% higher than expected. Net profit fell 0.2% year-on-year to US$256 million, surpassing both the firm's and market expectations by 34%. Chinese sales volume declined 9.7% year-on-year, but per-hectoliter revenue grew organically by 7.2%. Sales volume in South Korea remained flat year-on-year. The firm has lowered its 2026 to 2027 revenue forecasts by 0.2% to 1%, while raising its 2026 to 2028 net profit forecasts by 7% to 9%.