JP Morgan lowered the target price for BUD APAC to HKD 7.9, with a dividend yield of 5.7%, limiting the downside potential of the stock price

AASTOCKS
2026.01.12 03:57

JP Morgan published a research report indicating that Bud APAC (01876.HK) is expected to see a natural revenue decline of 5.4% year-on-year in the fourth quarter of last year, with EBITDA dropping by 10.5%, compared to declines of 8.4% and 6.9% in the third quarter, respectively.

JP Morgan stated that Bud APAC's business in China remains weak, growth in South Korea has slowed due to a high base, and strong growth in India has not been able to drive the group's performance. Although the company has increased its advertising and promotional investments in the home channel, sales and profits in China are still under pressure.

The bank expects Bud APAC's natural sales and EBITDA to decline by 6.4% and 8.6% respectively in 2025, with average annual growth of 4% and 6% recorded from 2026 to 2027. Additionally, the bank expects the company's dividend yield to reach 5.7%, providing downside support for its stock price, maintaining a "neutral" rating, and lowering the target price from HKD 8.5 to HKD 7.9

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