SEHK:1876

Stock Analysis Report

Budweiser Brewing Company APAC

Executive Summary

Budweiser Brewing Company APAC Limited, an investment holding company, produces, imports, markets, distributes, sells, and exports beer primarily in China, South Korea, India, Vietnam, and other Asia Pacific regions.


Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has Budweiser Brewing Company APAC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1876's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.9%

1876

5.5%

HK Beverage

7.4%

HK Market


1 Year Return

n/a

1876

-3.7%

HK Beverage

-22.7%

HK Market

Return vs Industry: Insufficient data to determine how 1876 performed against the Hong Kong Beverage industry.

Return vs Market: Insufficient data to determine how 1876 performed against the Hong Kong Market.


Shareholder returns

1876IndustryMarket
7 Day-2.9%5.5%7.4%
30 Day-14.5%-10.4%-11.2%
90 Day-24.0%-22.8%-17.3%
1 Yearn/a-3.1%-3.7%-19.9%-22.7%
3 Yearn/a30.5%27.9%-5.3%-14.8%
5 Yearn/a-27.2%-35.3%-8.7%-23.4%

Price Volatility Vs. Market

How volatile is Budweiser Brewing Company APAC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Budweiser Brewing Company APAC undervalued compared to its fair value and its price relative to the market?

34.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1876 (HK$19.98) is trading above our estimate of fair value (HK$19.28)

Significantly Below Fair Value: 1876 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1876 is poor value based on its PE Ratio (34.4x) compared to the Beverage industry average (24.2x).

PE vs Market: 1876 is poor value based on its PE Ratio (34.4x) compared to the Hong Kong market (9x).


Price to Earnings Growth Ratio

PEG Ratio: 1876 is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: 1876 is overvalued based on its PB Ratio (3.5x) compared to the HK Beverage industry average (0.6x).


Next Steps

Future Growth

How is Budweiser Brewing Company APAC forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1876's forecast earnings growth (16.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 1876's earnings (16.7% per year) are forecast to grow faster than the Hong Kong market (12.8% per year).

High Growth Earnings: 1876's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1876's revenue (5.3% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 1876's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1876's Return on Equity is forecast to be low in 3 years time (12.9%).


Next Steps

Past Performance

How has Budweiser Brewing Company APAC performed over the past 5 years?

-6.3%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 1876 has high quality earnings.

Growing Profit Margin: 1876's current net profit margins (13.7%) are lower than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1876's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: 1876's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 1876 had negative earnings growth (-6.3%) over the past year, making it difficult to compare to the Beverage industry average (-6.3%).


Return on Equity

High ROE: 1876's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is Budweiser Brewing Company APAC's financial position?


Financial Position Analysis

Short Term Liabilities: 1876's short term assets ($2.1B) do not cover its short term liabilities ($4.5B).

Long Term Liabilities: 1876's short term assets ($2.1B) exceed its long term liabilities ($931.0M).


Debt to Equity History and Analysis

Debt Level: 1876's debt to equity ratio (2.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1876's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1876's debt is well covered by operating cash flow (524.3%).

Interest Coverage: 1876's interest payments on its debt are well covered by EBIT (1361x coverage).


Balance Sheet

Inventory Level: 1876 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1876's debt is covered by short term assets (assets are 8x debt).


Next Steps

Dividend

What is Budweiser Brewing Company APAC's current dividend yield, its reliability and sustainability?

1.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1876's dividend (1.02%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.67%).

High Dividend: 1876's dividend (1.02%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.29%).


Stability and Growth of Payments

Stable Dividend: 1876 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1876 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1876 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1876's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average board tenure


CEO

Jan Eli B. Craps (42yo)

0.83

Tenure

Mr. Jan Eli B. Craps serves as Chief Executive Officer since May 9, 2019 and Co-Chair of the Board of Directors since February 19, 2020 at Budweiser Brewing Company APAC Limited and has been Director since ...


Board Members

NamePositionTenureCompensationOwnership
Jan Eli B. Craps
CEO & Co-Chair of the Board of Directors0.83yrno datano data
Renrong Wang
General Counsel0.83yrno datano data
Mun Tak Yang
Independent Non-executive Director0.67yrno datano data
Martin Cubbon
Independent Non-executive Director0.67yrno datano data
King-Suen Tsang
Independent Non-executive Director0.67yrno datano data
Felipe Dutra
Non-executive Director0.83yrno datano data
Carlos Brito
Non-Executive Co-Chair of the Boardno datano datano data

0.7yrs

Average Tenure

58yo

Average Age

Experienced Board: 1876's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: 1876 only recently listed within the past 12 months, with total shares outstanding growing by 3.6% in the past year..


Top Shareholders

Company Information

Budweiser Brewing Company APAC Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Budweiser Brewing Company APAC Limited
  • Ticker: 1876
  • Exchange: SEHK
  • Founded: 1888
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$264.868b
  • Shares outstanding: 13.24b
  • Website: https://www.budweiserapac.com

Number of Employees


Location

  • Budweiser Brewing Company APAC Limited
  • Tower Two, Times Square
  • Suites 3012-16
  • Causeway Bay
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1876SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDSep 2019
1876SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2019
BDWB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2019
1876SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDSep 2019

Biography

Budweiser Brewing Company APAC Limited, an investment holding company, produces, imports, markets, distributes, sells, and exports beer primarily in China, South Korea, India, Vietnam, and other Asia Pacific regions. It offers a portfolio of approximately 50 beer brands, including Budweiser, Stella Artois, Corona, Hoegaarden, Cass, and Harbin. The company also produces, markets, distributes, and sells other non-beer beverages. The company sells its products to distributors and selected retailers. It operates 52 breweries. The company was founded in 1888 and is based in Causeway Bay, Hong Kong. Budweiser Brewing Company APAC Limited is a subsidiary of AB InBev Brewing Company (APAC) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 13:35
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.