Bud APAC (01876) Slides Nearly 3% on Expected US$52 Million Non-Underlying Withholding Tax Charge; Citi Remains Cautious on Second-Half Outlook

Stock News
Oct 21

Bud APAC (01876) fell nearly 3%, down 2.05% as of press time to HK$5.96, with turnover of HK$62.4334 million.

On the news front, Bud APAC recently announced that for the quarter ended September 30, 2026, the group carried out an internal restructuring involving certain mainland China subsidiaries to improve capital efficiency, and expects to record approximately US$52 million in non-underlying withholding tax expenses.

Citi forecasts that Bud APAC's third-quarter sales will decline 7% year-on-year, with group organic EBITDA falling 12% year-on-year.

In addition, Citi lowered its core net profit forecasts for Bud APAC for 2026 to 2028 by 10%, 13%, and 11% respectively, due to a 2% reduction in sales forecasts for each year, while maintaining a cautious view on the second-half outlook.

The bank cut its target EV/EBITDA multiple for the West Asia Pacific business (which is weighted toward China) from 10x to 8x for 2026 forecasts, in line with the East Asia Pacific region, to reflect continued industry weakness.

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