CLSA has released a research report stating that it has lowered its profit forecasts for TINGYI (00322) for the current and next fiscal years by 6% and 5%, respectively. However, the firm increased the target price from HK$12.1 to HK$13.5 while maintaining a "Hold" rating. Management anticipates revenue growth in the low to mid-single digits for this year, with first-quarter performance meeting expectations. The report noted that TINGYI's revenue declined by 2% year-on-year last year, aligning with forecasts, while the gross profit margin increased by 1.7 percentage points. Net profit rose by 20.5%, exceeding expectations. CLSA projects the company's revenue to grow by 2.7% year-on-year this year, with instant noodle revenue increasing by 2% and beverage revenue rising by 3%.
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