[ET Net News Agency, 29 June 2018] UBS Global Research raised its target price for
Uni-President China (UPC)(00220) to HK$11.16 from HK$9.09, and retained its "buy" rating.
The research house said UPC's and Tingyi's (00322) 1Q results pointed to
stronger-than-anticipated noodle mix upgrade trends, which together with solid
premiumisation and potential ASP upside.
UBS raised its 2019/20 EPS forecasts by 5%/5%. It expects ROIC to improve from 7% in
2017 to 16% in 2021, driven by efficiency enhancement initiatives and instant noodle
premiumisation.
Despite a 30% share price appreciation since the release of the 1Q net profit result on
3 May, UBS thinks valuation remains attractive at 9.7x 2019 EV/EBITDA, below China/Hong
Kong and global peer averages of 12.9x and 12.7x, respectively. (KL)