External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Budweiser Brewing  APAC  / Equity Bottom-Up

<ul><li>In line with ours but likely below what the market expected, Bud APAC shares retreated another 4% upon its 3Q results, in which revenue/net profit grew/declined by +2.0%/-1.5% YoY.</li><li>In our view, while the market has stubbornly laser-focused on the weak S.Korea performance (sales/EBITDA - 5%/-21%), it seemed to have overlooked the solid APAC West performance.</li><li>For instance, the company’s China sales looked no worse than its major peers, considering a HSD% ASP uptick (vs Tsingtao/CR Beer: 8%/LSD%) and a flattish shipment (vs Tsingtao/CR Beer: -11%/-LSD%). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In line with ours but likely below what the market expected, Bud APAC shares retreated another 4% upon its 3Q results, in which revenue/net profit grew/declined by +2.0%/-1.5% YoY.In our view, while the market has stubbornly laser-focused on the weak S.Korea performance (sales/EBITDA - 5%/-21%), it seemed to have overlooked the solid APAC West performance.For instance, the company’s China sales looked no worse than its major peers, considering a HSD% ASP uptick (vs Tsingtao/CR Beer: 8%/LSD%) and a flattish shipment (vs Tsingtao/CR Beer: -11%/-LSD%). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Budweiser APAC (1876 HK) – 3Q Rev/NP +2%/-1%; S.Korea Disappointed

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Treasury Wine Estates / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/treasury-wine-estates-ltd" target="_blank" data-smartkarma-citation="entities:710:1" rel="noopener">Treasury Wine Estates (TWE AU)</a> aims to raise up to US$525m (A$825m) via a renounceable fully underwritten entitlement offer.</li>
<li>Proceeds from the placement will be used to part fund the acquisition of DAOU Vineyards, a luxury wine brand based in California.</li>
<li>In this note, we will talk about the deal dynamics.</li>
</ul>



Treasury Wine Estates (TWE AU) aims to raise up to US$525m (A$825m) via a renounceable fully underwritten entitlement offer.
Proceeds from the placement will be used to part fund the acquisition of DAOU Vineyards, a luxury wine brand based in California.
In this note, we will talk about the deal dynamics.


Treasury Wine Entitlement Offer - Not as Straightforward as It Sounds

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dpc-dash-ltd" target="_blank" data-smartkarma-citation="entities:36556:1" rel="noopener">DPC Dash (1405 HK)</a> raised around US$75m in its Hong Kong IPO in Mar 2023. Its IPO linked lockup is set to expire soon.</li>
<li>The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 672 stores across 20 cities, as of Jun 2023.</li>
<li>In this note, we will talk about the lock-up dynamics and updates since our last note.</li>
</ul>



DPC Dash (1405 HK) raised around US$75m in its Hong Kong IPO in Mar 2023. Its IPO linked lockup is set to expire soon.
The company is the exclusive master franchisee for Domino’s Pizza in China, HK and Macau. DPC operated 672 stores across 20 cities, as of Jun 2023.
In this note, we will talk about the lock-up dynamics and updates since our last note.


DPC Dash IPO - US$400m Lockup Expiry Should Provide a Liquidity Boost

<ul><li>Bud APAC’s core net profit of US$279mn was slightly below us, owing to 1) a weak S.Korea performance which consisted of a 7% revenue decline and a 30% slip in normalised EBITDA, 2) a normalising effective tax base subsequent to a provision reversal in India, and 3) currency erosion driven by a weak RMB and KRW to USD.</li><li>Excluding the latter, Bud APAC reported an organic 14.9% sales growth for the quarter (vs 7.9% as on reported basis), with the help of the continuous strength in China that consisted of an 11.0% volume growth and a 7.8% ASP uptick.</li><li>While we assert that there is no quick fix to the operational landscape in S.Korea (though transient, per management), we think market might have overlooked the robust China momentum that looks to be parallel to our sector picks such as CR Beer (291HK, Buy) and Tsingtao (168HK, Buy). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bud APAC’s core net profit of US$279mn was slightly below us, owing to 1) a weak S.Korea performance which consisted of a 7% revenue decline and a 30% slip in normalised EBITDA, 2) a normalising effective tax base subsequent to a provision reversal in India, and 3) currency erosion driven by a weak RMB and KRW to USD.Excluding the latter, Bud APAC reported an organic 14.9% sales growth for the quarter (vs 7.9% as on reported basis), with the help of the continuous strength in China that consisted of an 11.0% volume growth and a 7.8% ASP uptick.While we assert that there is no quick fix to the operational landscape in S.Korea (though transient, per management), we think market might have overlooked the robust China momentum that looks to be parallel to our sector picks such as CR Beer (291HK, Buy) and Tsingtao (168HK, Buy). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Budweiser APAC (1876 HK) – 2Q Organic Sales +15%

Analyst

Steve

Thematic (Sector/Industry)

<ul>
<li>China's beer sector is still trading up, despite the deflation concerns of the overall China consumer sector.</li>
<li>Visible ASP growth and margin improvement over the next few years make the sector an attractive investment opportunity.</li>
<li>Prefer <a href="https://www.smartkarma.com/entities/china-resources-beer-holdings" target="_blank" data-smartkarma-citation="entities:399:1" rel="noopener">China Resources Beer Holdings (291 HK)</a> as it offers the best risk-reward within the sector.  </li>
</ul>


China's beer sector is still trading up, despite the deflation concerns of the overall China consumer sector.
Visible ASP growth and margin improvement over the next few years make the sector an attractive investment opportunity.
Prefer China Resources Beer Holdings (291 HK) as it offers the best risk-reward within the sector.  


China Beer Sector: One of The Few Consumer Sectors That Are Still Trading Up After The Pandemic

China

Budweiser Brewing Company APAC Limited is a company principally engaged in the brewing and distribution of beer. The Company produces, imports, markets, distributes over 50 brands including Budweiser, Stella Artois, Corona, Hoegaarden, Cass, and Harbin. The principal markets include China, South Korea, India and Vietnam.

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Budweiser Brewing APAC (1876 HK)

Budweiser APAC (1876 HK) – 3Q Rev/NP +2%/-1%; S.Korea Disappointed

In line with ours but likely below what the market expected, Bud APAC shares retreated another 4% upon its 3Q results, in which revenue/net profit...

CMB International

Treasury Wine Entitlement Offer - Not as Straightforward as It Sounds

Treasury Wine Estates (TWE AU) aims to raise up to US$525m (A$825m) via a renounceable fully underwritten entitlement offer. In this note, we talk...

Sumeet Singh

DPC Dash IPO - US$400m Lockup Expiry Should Provide a Liquidity Boost

DPC Dash (1405 HK) raised around US$75m in its Hong Kong IPO in Mar 2023. Its IPO linked lockup is set to expire soon, resulting in US$400m worth...

Sumeet Singh

Budweiser APAC (1876 HK) – 2Q Organic Sales +15%

Bud APAC’s core net profit of US$279mn was slightly below us, owing to 1) a weak S.Korea performance which consisted of a 7% revenue decline and a...

CMB International

China Beer Sector: One of The Few Consumer Sectors That Are Still Trading Up After The Pandemic

China's beer sector is still trading up, despite the deflation concerns of the overall China consumer sector. One of the best consumer sectors to...

Steve

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