UBS published a report that lowered Budweiser Asia Pacific's earnings estimates by 6% and 7% respectively for this year and next, to reflect weak sales in China in the first half of the year. The target price dropped from HK$14.92 to HK$13.78. According to the bank, endogenous revenue in the first quarter of the Chinese business fell 2.7% year on year, sales volume fell 6.2% year on year, but average sales price increased 3.7% year on year. The report quoted management as saying that the decline in sales was mainly based on the high base of the economic restart last year and the adverse weather effects of March. The company's sales volume of high-end products in China is generally stable, driven by channel expansion. The report also quoted management as saying that high base pressure will ease in the second half of the year, which the bank believes means that sales growth in the second quarter will be under pressure. The bank also said that due to the high base, South Korea's first-quarter sales record fell according to the number of units in the middle of the year, but revenue rose due to product price increases and product mix changes. The bank's positive outlook for the company in South Korea for the second quarter is based on a low base and a rise in the local economy and easing inflation.