CLSA has revised its net profit forecast for U-PRESID CHINA (00220) downward and reduced the target price from HK$8.6 to HK$8.5, while maintaining an "Outperform" rating. The firm identified PET bottle prices as a primary risk to the company's profitability but noted that the impact may be delayed and could be partially offset by other raw material costs. Last year, the company's sales increased by 4.6% year-on-year, largely in line with expectations. Although profit margins were weaker than anticipated, profit growth, excluding one-time items, rose by 17.6%, which was broadly consistent with forecasts. Entering 2026, U-PRESID CHINA reported encouraging sales growth in the first two months, with its beverage segment performing particularly well.
Comments