[ET Net News Agency, 8 August 2018] Goldman Sachs lowered its target price for
Uni-President China (UPC)(00220) to HK$7.3 from HK$8 after updating for the latest CNYHKD
rate, and maintained its "buy" rating.
The research house said UPC's 1H net profit of Rmb714.3mn was 6% below Goldman's
estimates. The miss was mainly from slower than expected beverage sales growth and higher
other expenses.
Goldman views this set of results as unlikely to drive positive market surprises and
sees risks to the company's beverage growth in 2H. With a lack of new products
contribution and weak performance of key premium products, it sees UPC meaningfully
beating its full year 6% sales growth target as challenging.
Goldman trimmed its 2018-20 EPS forecasts by 2-5%, reflecting weaker sales growth and
slightly lower EBIT margin. (KL)