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<Research> M Stanley Cuts Uni-President China (00220.HK) TP to HKD9.2; Lowers Earnings Forecasts
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M Stanley issued a research report lowering the TP for Uni-President China (00220.HK) from HKD10.7 to HKD9.2, with a rating of "Equalweight", corresponding to a forecast 2026 price-to-earnings ratio of 16x. The broker reduced its earnings forecasts for this year and next year by 14%, mainly reflecting weaker-than-expected beverage sales. Revenue forecasts were also cut by 4% and 5%, respectively. Rising raw material prices are expected to weigh on gross margin, while the operating expense ratio for this year and next year was raised by 0.6 ppts. The broker expects the companys revenue to grow 5% YoY this year, with net profit increasing 7% YoY. The broker noted that growth in the beverage business will benefit from a recovery in the catering sector, although competition is intensifying. Demand recovery in the instant noodle industry remains weak, but price hikes by peers are expected to help Uni-President gain market share. The broker introduced a 2028 EPS forecast of RMB0.59. (ec/j) This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. Auto-translated by AI AASTOCKS Financial News |
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