Citi Lowers BUD APAC's Target Price to HKD11.4 and Reduces Sales and Profit Projections
Citi's Sales Forecast Adjustment: Citi has reduced its 2025-27 sales forecasts for BUD APAC by 3% to 4% due to a less favorable outlook for its China business, particularly for 4Q25 sales impacted by the timing of the Lunar New Year in 2026.
Core Net Profit Forecasts Cut: The bank has also lowered its core net profit forecasts for BUD APAC by 10% for 2025 and 2026, and by 9% for 2027, reflecting weakened operating leverage.
Target Price Revision: BUD APAC's target price has been decreased from HKD12.4 to HKD11.4, although Citi maintains a Buy rating on the stock.
Preference for Chinese Beer Makers: Citi's ranking of Chinese beer makers remains unchanged, with BUD APAC positioned below CHINA RES BEER and TSINGTAO BREW in their preference order.
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HSI Rises by 141 Points on Settlement Day as Chinese Developers Soar; Consumer Stocks Improve After Noon
Market Performance: Hong Kong stocks rose on the settlement date, with the HSI increasing by 141 points (0.5%) to close at 27,968, while the HSCEI gained 40 points (0.4%) to finish at 9,552. The HSTECH, however, fell by 59 points (1%) to close at 5,841.
Chinese Developers Surge: Significant gains were observed among Chinese developers, attributed to reports that they are no longer required to report the "Three Red Lines" metrics monthly. Notable increases included KWG GROUP (+40.96%), CHINA AOYUAN (+32.88%), and SUNAC (+29.13%).
Short Selling Activity: The short selling activity was notable, with various developers experiencing high ratios, such as SHIMAO GROUP (6.765%) and CIFI HOLD GP (1.472%), indicating a mix of investor sentiment in the market.
Consumer Stocks Rise: Consumer stocks also saw increases, with ZJLD surging by 12.35% and CTG DUTY-FREE by 7.98%, alongside other notable gains in companies like TSINGTAO BREW (+5.63%) and ANTA SPORTS (+4.80%).
<Research> Bernstein Reveals Top Asia-Pacific Picks for First Half of 2026 (Table)
CNOOC and JD.com Short Selling: CNOOC has a short selling value of $28.22M with a ratio of 3.983%, while JD.com shows a significantly higher short selling value of $91.22M and a ratio of 19.039%.
Stock Performance of Various Companies: Companies like SK hynix, Samsung Electronics, and MediaTek are mentioned, with some showing minor fluctuations in stock prices.
Brent Oil Price Forecast: Citi has raised its three-month Brent oil price forecast to $70 per barrel, indicating a positive outlook for oil prices.
Short Selling Data Overview: The report includes short selling data for various companies, with notable figures for Tsingtao Brew and Kunlun Energy, reflecting varying levels of market activity.
