UBS released a research report noting that TINGYI (00322) reported a 2% year-on-year decline in revenue last year. However, net profit and adjusted net profit increased by 20.5% and 14.1% year-on-year, respectively, meeting the bank's expectations, with the profit performance exceeding forecasts.
The bank stated that although TINGYI delivered strong results, recent rises in oil prices have introduced uncertainty to the outlook for PET and palm oil prices, which could impact the company's profit margins. Consequently, UBS lowered its earnings per share forecasts for 2026 and 2027 by 5% each. The bank maintained its target price of HK$14 and a "Buy" rating on the stock.
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