[ET Net News Agency, 7 November 2019] Goldman Sachs lowered its target price for
Uni-President China (UPC)(00220) to HK$8.1 from HK$9 and maintained its "neutral" rating.
The research house said UPC's 3Q net profit growth of 6.5% was much slower than 1H's 40%
and reflects a tougher competitive environment in both the noodles and beverage segments.
Given this, UPC may need to invest more in A&P expenses for its new products this quarter.
Goldman cut its 2019-2021 EPS forecasts by 6-8% to reflect the slower 3Q growth and now
expects a 4Q net profit loss of Rmb50mn (from Rmb28mn previously). It thinks profit growth
as unlikely to sustainable in 2020 and that new products could still take time to
contribute meaningfully. (KL)