Elevator Pitch
I assign a Neutral rating to Hong Kong-listed Asia Pacific brewer Budweiser Brewing Company APAC Limited (OTCPK:BDWBF) (OTCPK:BDWBY) [1876:HK] or Budweiser APAC.
Budweiser APAC is the largest beer company in Asia Pacific, and it is a play on the premumization trend in the region's beer markets. A potential re-rating catalyst for the stock will be the utilization of its $1.3 billion cash balance for future acquisitions, particularly in Southeast Asia.
However, the nightlife channel in China might take a longer-than-expected time to recover, and Budweiser APAC faces stiff competition