UBS: Maintains "buy" rating on BUD APAC (01876), raises target price to 9.16 Hong Kong dollars.

UBS released a research report stating that it maintains a "buy" rating on BUD APAC (01876), with a target price raised from 8.2 Hong Kong dollars to 9.16 Hong Kong dollars. The management of BUD APAC reiterated that revenue growth through improving channel mix and brand portfolio will be the key task in mainland China this year, confirming the company's long-term strategy of geographic expansion and premiumization. The company aims to stabilize and expand its market share by establishing partnerships with distributors, focusing on coastal areas and gradually penetrating into western or lower-tier cities. BUD APAC also plans to upgrade its brand portfolio from core+ to premium with its non-sugar products from Harbin Beer. From an industry perspective, the management expects beer sales to decline in low single digits this year, which is more conservative than the bank's view of gradually improving consumer confidence and spending this year. UBS raised its average selling price forecast for this year to 2027 by 2% to 3% to reflect the ongoing premiumization trend and slightly lower sales growth. The bank also raised the EBITDA margin for the company's mainland business by 219 to 339 basis points to 36% to 37%, driving the forecast for net profit in the period up by 12% to 17%.