Newsletter summary
Goldman Sachs reported that Budweiser Asia Pacific China market is high-end and regional expansion is robust, although sales in the first quarter are affected by the comparison base and weather, it is not expected to be optimistic in the second quarter. Cost factors such as lower aluminum prices and slower barley costs may have a positive impact. Goldman Sachs fine-tuned its sales forecast for the 2024-2026 fiscal year. South Korea strongly offset weak sales in China, with EBITDA forecasts up in the east of the Asia-Pacific region and downgrades in the west due to weather. The company's business investment remained agile, the profit forecast was cut by 2%, and the target price was reduced by 14%.Playgamesearncrypto.9 fell to HK $14.6, maintaining a "buy" rating.
Text of news flash
[Goldman Sachs Research report: Budweiser Asia-Pacific Brand High-end steady Progress] Goldman Sachs recently releasedPlaygamesearncryptoIn the research report, Budweiser Asia Pacific revealed key points at its results conference in the first quarter of fiscal 2024 that attracted the attention of the financial community. The company's high-end process in the Chinese market remains stable, showing a strong momentum of regional expansion. However, the company noted that the difficult year-on-year basis for sales in the first quarter of this year, coupled with unstable weather conditions in the core areas of business development, were expected to have a sustained impact on second-quarter results. In addition, as aluminum prices fall further and barley costs continue to decline, more cost drivers are expected in the coming months. [Goldman Sachs tweaks Budweiser Asia Pacific sales Forecast] after assessing the weak trend of sales in China, Goldman Sachs believes that strong growth in the South Korean market will effectively offset this negative impact. Goldman Sachs raised its EBITDA forecast for the eastern Asia-Pacific region for the fiscal year based on better-than-expected growth in profit margins in South Korea. However, due to recent changes in weather conditions, Goldman Sachs also lowered its EBITDA forecast for the western Asia-Pacific region accordingly. [Goldman Sachs cut Budweiser Asia Pacific target price to maintain buy rating] Goldman Sachs acknowledged Budweiser Asia Pacific's agility in business investment and cut its profit forecast for the 2024-2026 fiscal year by about 2%. At the same time, Goldman Sachs slightly lowered its target price for Budweiser Asia Pacific to HK $14.6 from HK $14.9, but maintained its "buy" rating, indicating a positive view of Budweiser's Asia Pacific business prospects.