[ET Net News Agency, 12 November 2020] Daiwa Research lowered its target price for
Uni-President China (UPC) (00220) to HK$8.3 from HK$9.2 and maintained its "outperform "
rating.
The research house cited UPC's management mentioning selling expenses fell significantly
in 3Q, thanks to its early efforts in channel investments since the pandemic eased in
China. Management expects the drop in selling expenses to sustain in 4Q, despite increased
key brand investments since 2Q, which have been effective.
Daiwa raised its 2020-22 net profit forecasts by 6.4%-7.2%, its revenue by 0.4%-0.5%,
and its gross margin and operating margins by 1pp each to reflect higher contributions
from its recovering beverage business and lower selling expenses estimates. (KL)