[ET Net News Agency, 15 June 2018] Goldman Sachs raised its target price for Tingyi
Holdings (00322) to HK$21.1 from HK$17, and upgraded its rating to "buy" from "neutral".
As competitive pressure in noodles eases, the research house expect Tingyi's focus on
efficiency to deliver further margin expansion. Goldman also believes beverages can be an
upside surprise over the next two quarters. It thus raised its 2018-2020 EPS forecasts by
up to 25%.
It said Tingyi's operating performance has recovered after bottoming in 2Q 2016 and
Goldman believes it is on track for a multi-year margin recovery on the back of: (1)
easing competitive pressure in noodles coupled with mix upgrades; (2) upside in beverages
from price hikes and improving demand; and (3) ongoing efficiency efforts in plants and
distribution. (KL)