[ET Net News Agency, 22 November 2018] DBS Group Research lifted its target price for
Vitasoy International Holdings (00345) to HK$29 from HK$23 and upgraded its rating to
"buy" from "hold".
The research house said Vitasoy's 1H FY2019 earnings saw a stellar 30% YoY growth,
beating expectations. China remained the key driver, which posted a 33% sales growth and a
stronger 42% surge in operating profit, riding on better economies of scale.
Other markets also showed solid performance - Hong Kong sales growth accelerated
slightly to 4% while operating profit recorded growth of 5%. Smaller markets such as
Australia and Singapore recorded steady sales growth of 5% and 9% respectively.
DBS raised its earnings forecast by 9% in FY2019 and 16% in FY2020 on higher sales
assumption in China, with FY18-20 CAGR estimated at 25%. (KL)