[ET Net News Agency, 22 January 2021] Jefferies Research lifted its target price for
Tingyi (Cayman Islands) Holding (00322) to HK$17.7 from HK$17.3 and maintained its "buy"
rating.
The research house said the target price hike was due to (1) continuing its strategy to
improve operating efficiency through an asset disposal, consolidation; (2) increase in
sales from higher-end products although the current sales mix is still small, and (3) its
delayering of distribution allows Tingyi to get close to the market (especially in 2H
2020).
Jefferies expects a 9% increase in sales to RMB67bn with net profit increased by 27% to
RMB4bn in 2020. It said the virus outbreak lifted sales volumes for its noodles and
bottled water, offering Tingyi potential to retain some of these new customers for future
product upgrades, once emergency needs subside. (KL)