Lyon: Bud Apac's net loss in the last quarter was higher than expected, and the dividend was lower than expected. It is rated as "outperforming the market."

Lyon released a research report stating that the target price for BUD APAC (01876) is 9 Hong Kong dollars, with a rating of "outperform the market." BUD APAC's performance in the fourth quarter of last year was broadly in line with expectations, with organic revenue down 4% year-on-year and organic normalized EBITDA down 25% year-on-year, broadly in line with the bank's expectations and market consensus. Net loss was higher than expected due to higher-than-expected tax expenses. The performance in the Chinese market continues to drag down the overall performance, with revenue declining by 11% and sales volume decreasing continuously, but investment support for the home channel and changes in product mix have not benefited, putting pressure on average selling prices. On the other hand, the group's performance in South Korea and India markets is solid, and dividend payout is in line with expectations. The bank believes that key points to watch are macroeconomic policies, development of the home channel, and marketing budgets.