[ET Net News Agency, 10 August 2020] HSBC Global Research lowered its target price for
Uni-President China Holdings (UPC)(00220) to HK$10 from HK$10.3 and maintained its "buy"
rating.
The research house said UPC's 1H results beat on a one-off land disposal gain of RMB61m.
However, HSBC noted that GPM (gross profit margin) decreased by 81bps to 35.8% (versus
36.6% in 1H 2019) and missed HSBC's forecast of 36.9%.
Off the slowdown in beverage sales (-7%) in 1H, management started to see a
better-than-expected recovery from July. HSBC expects UPC's margin to show a sequential
improvement to 36.1% with net profit growing 16.8% in 2H, supported by (1) a more
favorable product mix on demand recovery in the beverage segment, (2) a higher utilisation
rate with production resumed to normal levels, and (3) a favorable product mix shift in
instant noodles. (KL)
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00220 U-PRESID CHINA
Nominal 
6.000 +0.060 (+1.010%) Others
10/08/2020 17:01
{I-bank focus}HSBC cuts Uni-President China (00220) to HK$10
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
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