CMB International Securities: Lowered target price of Budweiser APAC (01876.HK) to 9.1 Hong Kong dollars, maintaining a "neutral" rating.

According to the Wise Financial APP, CMB International released a research report stating that the target price of Budweiser APAC (01876.HK) has been lowered by 3% from 9.4 Hong Kong dollars to 9.1 Hong Kong dollars, maintaining a "neutral" rating. The group's performance in the first quarter was weak but in line with expectations, with sales down 7.5% year-on-year, mainly due to the continued headwinds in the mainland market, where sales declined by 12.7%. The group's recurring EBITDA decreased by 11.2%, mainly due to the weakening of operational leverage. However, the performance in the Asia Pacific East region remains strong, with sales and EBITDA increasing by 11.7% and 24.4% respectively, and the gross profit margin remaining stable at 51%. The bank believes that the recovery trajectory of Budweiser APAC may be more complex than its peers, and expects beer sales to recover in the summer of this year. China Resources Beer (00291.HK) is the bank's preferred investment target.