UBS: Maintains "Buy" rating on BUD APAC (01876) with a target price lowered to 8.2 Hong Kong dollars.

UBS released a research report stating that they maintain a "buy" rating for BUD APAC (01876), believing that its strong cash flow can support a stable dividend in 2024. The target price has been lowered from HK$11.72 to HK$8.20. The bank believes that restaurant consumption may improve this year due to the company's strategic execution and consumption stimulus, supporting sales recovery in China. The report mentions that BUD APAC's profit in the Chinese market is weak, with downside risks to its business. Therefore, the net profit forecast for the group for 2024 to 2026 has been revised down by 11% to 16%. The bank expects the group's performance in the Chinese market in the fourth quarter to be similar to the trend in the third quarter, with EBITDA in the fourth quarter expected to decrease by around 20% due to declining sales and deleveraging impact. However, the group's valuation has hit rock bottom, and it is believed that recent profit performance is already reflected in the stock price.