BUD APAC (01876) Drops Over 4% in Early Trading as Beer Sales Remain Weak During Summer Peak Season

Stock News
Sep 29

According to reports, BUD APAC (01876) fell more than 4% in early trading. As of press time, the stock was down 4.27% at HK$5.835, with a turnover of HK$31.1179 million.

On the news front, a research report noted that BUD APAC management stated that amid weak macroeconomic conditions, a decline in the on-trade channel, and unfavorable weather, beer sales remained weak during the summer peak season, while a recovery in 2027 depends on macroeconomic conditions. In this weak environment, the company does not plan to raise prices and believes that product mix upgrading is more important for increasing average selling prices, with its core+ products growing while core and value products continue to decline. The dividend plan is still under review, and no update has been provided on M&A plans.

Another securities firm stated that the industry is currently in its peak season, but due to the weak recovery in the catering sector and the impact of rainy weather in multiple regions, the fulfillment of peak season prosperity has been relatively low. The firm believes that a recovery in the catering sector can still be expected in the medium term. The earlier decline in fundamental expectations has led to a significant downward revision in sector valuations. Considering the relatively stable competitive landscape of the beer industry and the relatively decent dividend levels, it still recommends continued attention to the sector.

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