[ET Net News Agency, 19 January 2021] Jefferies Research raised its target price for
China Mengniu Dairy (02319) to HK$58 from HK$45 and reiterated its "buy" rating.
The research house forecast 12% organic sales growth and 50bps expansion in operating
margin in 2H 2020. In the near term, Jefferies expects Mengniu to maintain teens sales
growth and 30-50bps operating margin expansion, helped by continuing demand, easing
competition, product mix change, and improving efficiency.
Jefferies revised up its earnings forecast by 1%-5% in 2020-22 to factor in the
accelerating demand, benefit from promotion cut, and higher associate profit from China
Modern Dairy (01117). (KL)