Budweiser Brewing Co. APAC Ltd. (1876) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

ZJLD Group, Inc.

Tsingtao Brewery Co., Ltd.

Dynasty Fine Wines Group Ltd.

Budweiser Brewing Co. APAC Ltd.

China Resources Beer (Holdings) Co. Ltd.

San Miguel Brewery HK Ltd.

Grace Wine Holdings Ltd.

China Tontine Wines Group Ltd.

Why is Budweiser Brewing Co. APAC Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 26.73

Poor long term growth as Net Sales has grown by an annual rate of 0.73% and Operating profit at 3.24% over the last 5 years

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 16,247.79 MM
ROCE(HY) Lowest at 4.79%
NET SALES(Q) Lowest at HKD 20,496.57 MM

With ROE of 5.36%, it has a Fair valuation with a 1.28 Price to Book Value

Over the past year, while the stock has generated a return of -7.31%, its profits have fallen by -28.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.31% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Budweiser Brewing Co. APAC Ltd. should be less than 10%
Overall Portfolio exposure to Beverages should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Budweiser Brewing Co. APAC Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Budweiser Brewing Co. APAC Ltd.

-7.31%

-1.01

26.39%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.73%

EBIT Growth (5y)

3.24%

EBIT to Interest (avg)

26.73

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.60

Tax Ratio

36.30%

Dividend Payout Ratio

153.38%

Pledged Shares

Institutional Holding

0.06%

ROCE (avg)

13.09%

ROE (avg)

7.89%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.28

EV to EBIT

11.65

EV to EBITDA

6.97

EV to Capital Employed

1.38

EV to Sales

1.82

PEG Ratio

Dividend Yield

5.69%

ROCE (Latest)

11.81%

ROE (Latest)

5.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 937.5%

INVENTORY TURNOVER RATIO(HY)

Highest at 8.02 times

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 16,247.79 MM

ROCE(HY)

Lowest at 4.79%

NET SALES(Q)

Lowest at HKD 20,496.57 MM

OPERATING PROFIT(Q)

Lowest at HKD 4,320.82 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 21.08 %

PRE-TAX PROFIT(Q)

Lowest at HKD 2,417.78 MM

NET PROFIT(Q)

Lowest at HKD 784.28 MM

EPS(Q)

Lowest at HKD 0.05

Here's what is working for Budweiser Brewing Co. APAC Ltd.

Dividend Payout Ratio

Highest at 937.5% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Inventory Turnover Ratio

Highest at 8.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Budweiser Brewing Co. APAC Ltd.

Operating Cash Flow

Lowest at HKD 16,247.79 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Net Sales

Lowest at HKD 20,496.57 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 4,320.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 21.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 2,417.78 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 784.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Non Operating Income

Highest at HKD 0.26 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income