The Zhitong Finance App learned that Daiwa released a research report stating that it reiterated the “buy” rating of Budweiser Asia Pacific (01876) and raised the 2023-24E earnings test by 4% per share to take into account the high sales and revenue brought about by high-end development, driven by the recovery of China's trade channels, with a target price of HK$27.5. The company's revenue in 2022 was 6.5 billion US dollars, up 2.4% year on year, and normalized net profit was 859 million US dollars, down 12.3% year on year, lower than the bank's forecast of 3%. The Board recommended increasing the 2022 dividend to 3.78 US cents.

According to the report, the company's high-end and ultra-high-end segments experienced double-digit revenue declines in the fourth quarter of 2022 due to the closure of restaurants and nightlife venues in China. Total beer sales in the fourth quarter of 2022 fell 2.2% year over year, and total revenue per hundred litres fell 2.6% year over year. Management pointed out that by the end of February, Budweiser Asia Pacific's venue reopening rate in China reached about 98%. As sales increased by more than 20% year-on-year in that month, the overall recovery trend at all city levels is encouraging. Management is optimistic about China's prospects in 2023, and the disproportionate impact of trade channels is likely to be reversed. The bank expects China's sales volume, average sales price, and profit margin to improve across the board, and high-end growth remains the main driving force for growth.