CICC released a research report stating that, considering the rise in market valuations, it maintains a target price of HK$14 for TINGYI (00322), corresponding to price-to-earnings ratios of 15.1x and 14.2x for this year and next, respectively, with an upside potential of 17.4%; the "Outperform" rating is also maintained.
The institution forecasts that TINGYI's revenue declined by 2% last year, while net profit increased by 16.3% year-on-year; after excluding one-time gains from asset disposals, net profit grew by 12.5% year-on-year. It is further projected that revenue for the second half of last year fell by 1.2% year-on-year, with net profit rising by 12%.
Taking into account intensified competition in the beverage sector, CICC has lowered its profit forecasts for the group for 2025 and 2026 by 0.6% and 5.6%, respectively, to 4.34 billion yuan and 4.63 billion yuan, while introducing a 2027 profit forecast of 4.93 billion yuan.
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