Uni-President China (220 HK) Buy: Company tour takeaways

研报英文原文证据摘录

Uni-President China (220 HK) Buy: Company tour takeaways

nagement believe that growth

opportunities lie in category innovation and diversified consumption scenarios amid 52-WEEK PRICE (HKD)

intense industry competition. In the highly competitive iced tea sector, UPC has 12.00

adopted a differentiated product strategy by introducing “Double Extract Lemon Tea” 9.35

and high-end sugar tea products in the price brand of more than RMB5 going

forward. For sugar-free tea, UPC has operated its sugar-free tea series independent 05/25 11/25 05/266.70

of the group brand to create another star product. In terms of marketing, the company Target price: 10.00 High: 10.60 Low: 7.21 Current: 8.12

decided not to follow the industry’s popular practice of “RMB1 Lucky Buy” campaign,

Source: LSEG IBES, HSBC Qianhai Securities estimates

and instead launched “Winning EV” lucky draw activity, keeping costs under control

without squeezing channel profits.

Darron Xue* (Reg. No. S1700518110002)

Analyst, A-share Food & Beverage and Pulp & Paper

Channel optimisation. UPC is vigorously promoting channel coverage for new HSBC Qianhai Securities Limited

markets and consumption scenarios, increasing exposure to new channels with darron.xue@hsbcqh.com.cn

significant potential, such as factories, campuses, and e-sports, while eliminating +86 755 8898 3407

inefficient sales outlets. In 4M26, UPC cut 8,000 inefficient outlets in Sichuan and Kathy Song* (Reg. No. S1700517120001)

Head of A-share Consumer Research

added 7,000 high-yield ones in its distribution network, leading to a meaningful HSBC Qianhai Securities Limited

improvement in unit yield with outlet numbers largely unchanged; most categories kathy.l.h.song@hsbcqh.com.cn

+86 21 5066 2007

delivered double-digit y-o-y sales growth.