HK Stock Market Move | BUD APAC (01876) falls over 4% in early trading as beer sales remain weak during the summer peak season.

BUD APAC (01876) fell over 4% in early trading. As of press time, it was down 4.27% at HK$5.835, with a turnover of HK$31.1179 million. On the news front, CLSA issued a research report stating that BUD APAC's management said beer sales remained weak during the summer peak season amid weak macro conditions, a decline in the on-trade channel, and unfavorable weather, while a recovery in 2027 depends on macro conditions. In the weak environment, the company does not plan to raise prices and believes that product mix upgrading is more important for raising average selling prices, with its core+ products growing while core and value products are still declining. The dividend plan is still under review, and no update was provided on M&A plans. Sinolink stated that the industry is currently in its peak season, but due to the weak recovery in the catering sector & rainy weather in many regions, the realization of peak-season prosperity is relatively low. We believe that a recovery in the catering sector can still be expected in the medium term. The earlier decline in fundamental expectations has led to a notable downward revision in the sector's valuation. Considering the beer industry's relatively stable competitive landscape and relatively decent dividend level, we still recommend continued attention.