Citi has released a research report stating that Bud APAC's second-quarter results show underperformance in the China business, but strong growth in South Korea and India. Citi believes the overall group operations are impacted by ongoing challenges in the Chinese market, particularly weakness in the on-premise channel, while the at-home consumption channel is gradually improving.

The group's normalized EBITDA for the second quarter fell 10% year-on-year, with organic sales declining 2% year-on-year. EBITDA margin contracted 229 basis points year-on-year to 27.6%. During the period, organic sales volume dropped 4% year-on-year, with a 6% decline in the Asia Pacific West region, a 10% decline in China, and a 10% increase in the Asia Pacific East region. The group's average selling price increased 2% year-on-year, with a 2% rise in the Asia Pacific West region, a 1% rise in China, and a 2% decline in the Asia Pacific East region.

Citi maintains a "Buy" rating on Bud APAC with a target price of HK$10.9.