HK Stock Market Move | BUD APAC (01876) fell over 7% as the Chinese market pressure dragged down short-term performance. Daiwa expects its third-quarter performance to be weaker than expected.

BUD APAC (01876) fell over 7%, and as of the time of publication, it was down 7.09% at HKD 6.55, with a trading volume of HKD 250 million. On the news front, BUD APAC recently released its interim results for the period ending June 30, 2026. The company recorded revenues of USD 3.171 billion in the first half of the year, representing a year-on-year decline of 1.4% on an organic basis; adjusted EBITDA decreased by 8.9% to USD 926 million. Operating pressure intensified in the second quarter, with revenue down 2.1% year-on-year to USD 1.678 billion; sales volume dropped by 4.1%, and the EBITDA margin fell year-on-year by 229 basis points to 27.6%. The primary drag came from the Chinese market. In the second quarter, sales volume in the China region decreased by 9.7% year-on-year, revenue fell by 8.6%, and adjusted EBITDA dropped by 15.9%, with overall performance weaker than the group average. Daiwa believes that although the base period from the same time last year was relatively low, the company's sales volume in China during the third quarter will still be under pressure, and performance may fall short of market expectations. After the stock price rebounded over 15% in July, its valuation has become more reasonable. Therefore, it downgraded the rating from "Buy" to "Hold" and lowered the target price from HKD 9.2 to HKD 7. The report noted that management's attitude toward third-quarter sales volume in China is cautious, emphasizing that there has been no significant improvement in the restaurant channel in July, and inventory levels in the channel may continue to decline slightly in the second half of the year.