Citi: Lowers BUD APAC (01876) target price to HK$8.7, cuts core net profit forecast by 10% to 13%

Citi issued a research report stating that it has lowered the target price for BUD APAC (01876) from HK$10.8 to HK$8.7, maintained its "Buy" rating, and cut its core net profit forecasts for 2026 to 2028 by 10%, 13%, and 11% respectively, due to a 2% reduction in sales forecasts for each year, while taking a cautious view on the outlook for the second half of the year. The bank lowered the target EV/EBITDA multiple for the West Asia Pacific business (with a heavier weighting in China) from 10x to 8x its 2026 forecast, in line with the East Asia Pacific region, to reflect continued industry weakness. Citi reiterated its ranking order for China's beer industry as CHINA RES BEER (00291), BUD APAC, and Tsingtao Brewery (00168), all rated "Buy."