[ET Net News Agency, 27 March 2020] Jefferies Research lowered its target price for
China Mengniu Dairy (02319) to HK$36 from HK$37.8 and maintained its "buy" rating.
Mengniu management expects its sales growth to gradually recover in 2Q, and then return
to double-digit growth in 2H. The research house forecast an 11% sales decline and a 21%
recurring net profit decline in 2020.
Jefferies doesn't expect its fundamentals to be impacted by the virus outbreak. It
believes Mengniu is a good proxy to show China's consumption recovery post-Covid-19.
Jefferies forecast a 21% recurring net profit decline to Rmb2,522mn in 2020. (KL)