Jefferies Financial released a report predicting a decline in sales for Bud APAC (1876.HK) in Q2, and lowered its target price from the original HKD18.7 to HKD16.7, while maintaining a 'buy' rating. Jefferies Financial expects Bud's Q2 adjusted EBITDA to be USD551 million, a year-on-year decline of 4%, mainly due to a 7.3% decline in sales material. Despite being affected by a high base in mainland China in the second quarter of last year and this year's rainy season in the south, the trend towards high-end products continues, and the South Korean market is expected to continue to benefit from last year's fourth-quarter price hike. The bank has lowered its net profit forecast for Bud APAC for the three-year period from 2024 to 2026 by 5%, 3%, and 3%, respectively, to reflect lower sales assumptions and raised effective tax rates by 1%. The latest target price is HKD16.7, equivalent to a forecast P/E ratio of 32 times and 26 times for the next two years.