HK Stock Market Move | BUD APAC (01876) fell more than 5% approaching historical lows. The second-quarter performance was weaker than expected, with increased marketing costs restraining gross profit margins.

BUD APAC (01876) fell more than 5%, hitting a low of HK$6.05, approaching the historical low of HK$5.958. As of the time of writing, it has fallen by 4.55% to HK$6.08, with a trading volume of HK$54.04 million. Morgan Stanley released a research report stating that due to the impact of weather conditions in China and weak dine-in demand, it is currently forecasted that BUD APAC's sales volume in the Asia Pacific market in the second quarter of this year will decrease by 1.3% year-on-year, with product average selling prices expected to remain stable. This is due to an improvement in the high-end product mix and deleveraging in the Chinese market, which is expected to increase sales costs and pressure profit margins. J.P. Morgan stated that BUD APAC's performance in the second quarter was weaker than expected, forecasting a year-on-year decline of 1% in organic revenue and 8% in EBITDA, similar to the first quarter trend. Factors such as unfavorable weather and slower-than-expected recovery in the dining channel continue to drag down overall performance in the Chinese market. Product sales volume and average selling prices are expected to decline, while expenses have increased due to promotions for the World Cup and the launch of new products, further squeezing profit margins.