1H26 Results First Read: Sales In-Line; GPM Beat on Better Product Mix

Research evidence excerpt

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M

Update

August 11, 2026 12:28 PM GMT

Morgan Stanley Asia Limited+

Tingyi (Cayman Islands) | Asia Pacific

Lillian Lou

Equity Analyst

1H26 Results First Read: Sales

In-Line; GPM Beat on Better

Product Mix

Charlotte Zhou

Research Associate

Carlos Liu, CFA

Research Associate

AlphaSignals Earnings Reaction

Unchanged

Modest upside

Largely unchanged

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Tingyi (Cayman Islands) (0322.HK, 322 HK)

China/Hong Kong Consumer | China

stronger-than-expected GPM expansion from product mix improvement

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 10, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

OPM expanded 1.1ppt to 9.0%, mainly reflecting 1.3ppt expansion in GPM, offset

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

by a 0.2ppt higher admin expense ratio while selling ratio was flat yoy

EPS (Rmb)**

EPS (Rmb)§

Revenue, net (Rmb mn)

EBITDA (Rmb mn)

ModelWare net inc

(Rmb mn)

P/E

P/BV

RNOA (%)

ROE (%)

EV/EBITDA

Div yld (%)

FCF yld ratio (%)**

Leverage (EOP) (%)

0.81

0.79

0.84

0.90

0.75

0.78

0.82

0.88

79,068 81,362 83,613 85,689

10,607 10,835 11,490 12,077

4,501

4,446

4,759

5,072

Key Takeaways

The company reported 1H26 revenue of Rmb40.5bn (+1.1% yoy), largely in line

with consensus, with noodles +2.0% yoy and beverages +0.7% yoy

Recurring net profit of Rmb2.4bn (+15% yoy), beat consensus of Rmb2.3bn, on

By segment:

• Beverages (65.5% of total sales): Sales up 0.7% yoy with declines across

water, juice and carbonated soft drinks segments, offset by 9% growth in the

tea segment. GPM expanded by 0.7ppt to 38.4% with a better product mix

amid PET cost headwinds.

• Noodles (33.9% of total sales): Sales up 2.0% yoy. GPM improved 2.5ppt to

30.3% with product mix improvement (revenue from high-priced packet

+3.3% yoy, contributing 38.3% of segment sales vs. 37.8% in 1H25)

More details to follow after the results briefing at 10:00 AM on Aug 12.

12.7

3.8

33.4

31.6

5.4

7.8

14.0

7.2

…