[ET Net News Agency, 27 March 2020] UOB Kay Hian lowered its target price for China
Mengniu Dairy (02319) to HK$32.5 from HK$35 reflecting the temporary negative impact from
the COVID-19 pandemic and maintained its "buy" rating.
The research house said Mengniu's 2019 results are in line with management expectations.
It indicates that Mengniu's brand rejuvenation strategy is intact, and after the outbreak
is contained, the company can resume its double-digit growth trajectory.
UOBKH cut 2020 sales estimate by 1.8% and recurring net profit by 23%. It now assumed
Mengniu's organic (ex-Junlebao, ex-Bellamy, ex-Lion Dairy) revenue to grow only 3.2% for
2020 (1H: -2%). (KL)