BOC International expects the results of Budweiser Asia Pacific (01876) in the second quarter of 2024 to continue to be affected by the high base, but there should be some improvement in the second half of the year.
The Zhitong Finance App learned that BOC International released a research report stating that it reaffirmed the Budweiser Asia Pacific (01876) “buy” rating. It is expected that the company's performance in the second quarter of 2024 will continue to be affected by the high base, but there should be some improvement in the second half of 2024, with a target price of HK$15.6.
The bank pointed out that due to the high base and bad weather in March, the company's sales volume fell 6.2% per year in the first quarter of 2024, but the average price continued to grow steadily, driving the EBITDA profit margin to increase by 145 basis points. Korea's EBITDA margin increased 334 basis points to 27.8%. As the only brewery with a full portfolio of high-end brands, Budweiser is using its advantages to enhance the high-end level of the market with differentiated products.