Want Want (151 HK) Hold: Limited impact from raw material prices hike

研报英文原文证据摘录

Want Want (151 HK) Hold: Limited impact from raw material prices hike

eld of 7.4% in ROE (%) 25.6 21.2 19.3 19.6

FY26e; we see the downside risk of rising raw material prices as being less than peers,

and view it as a dividend play. 52-WEEK PRICE (HKD)

Medium- to long-term concerns remain. We believe the brand power and premium 6.20

capability of traditional snack brands are facing challenges from the discount snack 4.95

channel. In the short term, cooperation with this channel could offset the negatives 3.70

from customer loss in the traditional channel for the company’s revenue. However, the 06/25 12/25 06/26

profitability of this channel remains an overhang in the medium to long term, we believe. Target price: 4.70 High: 5.94 Low: 4.02 Current: 4.21

Source: LSEG IBES, HSBC Qianhai Securities estimates

Earnings estimate revisions: We lower our FY26-27e gross margin estimates by

1.0ppt and 0.3ppt, respectively, to factor in higher PET prices, and keep our other

Darron Xue* (Reg. No. S1700518110002)

earnings forecasts unchanged. As such, we lower our net profit estimates by 4.5% in Analyst, A-share Food & Beverage and Pulp & Paper

FY26e and 1.2% in 2027e. HSBC Qianhai Securities Limited

darron.xue@hsbcqh.com.cn

Maintain Hold; lower TP to HKD4.70 from HKD5.20. We continue to value the +86 755 8898 3407

stock based on a PE approach and roll over the valuation base year from FY25 to Kathy Song* (Reg. No. S1700517120001)

Head of A-share Consumer Research

FY26. We expect net profit to grow at a CAGR of 4.1% over FY25-27e (previously HSBC Qianhai Securities Limited

4.8%), slightly lower than the historical CAGR of 4.8% over FY17-24. Therefore, we kathy.l.h.song@hsbcqh.com.cn

use a 12x FY26e target PE multiple (from 14x). Based on our FY26 EPS estimate of +86 21 5066 2007