HK Stock Market Move | Beer stocks collectively rise, BUD APAC (01876) up more than 4%, institutions point to the possibility of beer consumption restarting and prices recovering.

Beer stocks collectively rose, as of the deadline, BUD APAC (01876) rose 4.5% to HK$8.59; CHINA RES BEER (00291) rose 4.32% to HK$25.35; TSINGTAO BREW (00168) rose 1.24% to HK$53.2. On the news front, the State Council meeting on February 10 pointed out that boosting consumption is a top priority for expanding domestic demand and strengthening the domestic circulation. China Securities Co., Ltd. pointed out that with the approach of the two sessions, it is expected that there will be more policies related to boosting consumption. The company noted that Shanghai issued consumer vouchers again in February, and beer consumption is expected to restart with volume and price recovery. The 6-8 yuan price band structure upgrade is still in progress, with the restaurant demand recovering under the gradual implementation of policies, industry inventory remaining low, leading companies' February sales rebounding slightly, and the expectation of further recovery under a low base. The beer industry is at the end of capital expenditure, and state-owned enterprises are gradually increasing their focus on shareholder return on investment, with room for dividend ratio growth. According to recent disclosures from BUD APAC, in 2024, the company achieved revenue of $6.246 billion, a year-on-year decrease of 8.9%; normalized EBITDA was $1.807 billion, a year-on-year decrease of 10.7%; and net profit attributable to shareholders was $726 million, a year-on-year decrease of 14.8%. In addition, the board of directors proposed a dividend of $750 million for the 2024 financial year, an increase of 7% year-on-year.