Weilong Delicious Global Holdings (9985.HK): Softer 1H26; Shareholder return in focus — APAC Consumer & Leisure Corporate Day 2026 Takeaways; Buy

研报英文原文证据摘录

Weilong Delicious Global Holdings (9985.HK): Softer 1H26; Shareholder return in focus — APAC Consumer & Leisure Corporate Day 2026 Takeaways; Buy

Goldman Sachs Weilong Delicious Global Holdings (9985.HK)

dedicated channel-based teams, with separate KPIs for snack discount retail, KA, O2O,

and traditional distribution, aiming to build more balanced growth across offline and

online channels and improve execution in higher-quality traffic entry points. In offline,

value retailers remain a relative bright spot, with growth supported by store expansion

and better same-store performance. Online, Douyin and PDD continue to serve as

incubation platforms for new products, while O2O and instant retail are becoming more

important for traffic acquisition and launch efficiency.

4) Stable dividend payout at 60%+ with potential special dividend: Mgmt shared

60% payout ratio as baseline, with possible special dividends to be considered. Mgmt

shared strong cash position & cash flow, at the same time seeking to return more cash to

shareholders, while still preserving flexibility for potential strategic expansion or M&A.

Maintain Buy and more details within.

1. YTD Updates:

n Sales: 1H26 revenue came in below management’s expectations. While the CNY

period was relatively solid, revenue weakened in 2Q26 due to softer macro

consumption and internal adjustments at the company.

n Margins: Mgmt reiterated guidance of 46%-48% GPM and 18%-20% NPM. While

raw material volatility in oils and packaging persists, management sees the overall

impact as controllable. Mgmt shared selling expenses & ratio rose yoy in 1H26,

mainly due to endorsers, traffic operations, online promotion, and new product

incubation, while the mgmt ratio remained broadly stable yoy.

2. Product Performance & Strategy: