According to a research report published by Bank of America Securities, Budweiser Asia Pacific's revenue for the third quarter was weak but generally in line with lower market expectations. Revenue, EBITDA, net profit, and normalized net profit, excluding exchange factors, fell 8%, 23%, 50%, and 28% year-on-year respectively, which is believed to be dragged down by the continued weakness of the Chinese market and rising costs in other regions. Considering that the performance of the Chinese market in October this year is still under pressure, and cost pressure is expected to increase further next year, the bank lowered its EBITDA forecast for this year and next two years by 10% and 14%, and the normalized earnings per share forecast was lowered by 8% and 20%. The bank reaffirmed its “buy” rating and lowered the target price by 15% to HK$7.3 from HK$8.5. Budweiser Asia Pacific's stock price has declined by about 20% since the beginning of the year. Compared with the Hang Seng Index falling by about 10% during the same period, the bank believes that weak earnings are largely reflected in stock price performance. It is optimistic that the group will still be able to provide a dividend return of about 6%, and is supported by a strong balance sheet.

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