[ET Net News Agency, 17 June 2020] Daiwa Research lowered its target price for Want
Want China (00151) to HK$7.5 from HK$7.8 and maintained its "buy" rating.
The research house said Want Want streamlined its sales personnel team and delayed some
marketing activities in 2H FY2020 to FY2021 due to COVID-19. Administrative costs rose
by 6% in FY2020 on more R&D initiatives. Daiwa lowered its FY2021-22 EPS forecasts by 7-8%
on lower snack sales assumptions due to COVID-19, and higher financial and tax costs in
FY2020.
Led by recovery on the easing of lockdowns and a potential rise in shelf-gain and
distributors from industry consolidation, Daiwa expects Want Want's revenue to grow by
3%-9% in FY2021-22 from a 3% decline in FY2020. (KL)