Hong Kong Equity | China Consumer Goods Company in-depth Budweiser APAC 百威亚太 (1876 HK) ACCUMULATE People still drink Share Price Target Price Budweiser APAC is the Asia subsidiary of the world’s largest beer company AB HK$27.0 HK$23.5 InBev. Their market leading position, specifically in premium category has been targeting consumers with a desire to trade up in ongoing premiumization trend. Within their portfolio, Budweiser and Corona have strong brand equity globally China / Consumer Goods/ F&B and are appealing more to Asian consumers searching for higher quality beers. China is the most important market and the company has a 46.6% market share in 14 February 2020 premium category. But recent outbreak of coronavirus poses sudden and radical challenges. We initiate coverage with HK$27.0 TP, with 15% upside. Matthew Law (SFC CE:BDJ462) Market leader in China’s premium beers. China drank 488m HL of beer in 2018, making (852) 3519 1299 it the world’s largest market, accounting for 25% of world’s beer consumption. Chinese
[email protected] consumers drink 35L per capita vs 60L+ in mature markets, showing great growth potential. The company covers value to super premium beers, allowing them to raise consumer awareness of higher quality beers while also capturing the lower end market. Latest Key Data Total shares outstanding (mn) 13,243 World class beer portfolio. AB InBev owns 50 world famous beers including Budweiser, Market capitalization (HK$mn) 311,220 Stella Artois, Corona and Hoegaarden. The company was ranked first in beer value with Enterprise value (HK$mn) 309,530 footprint in all major markets.