Expect Modest Earnings Growth in 1H26; Maintaining Buy

研报英文原文证据摘录

Expect Modest Earnings Growth in 1H26; Maintaining Buy

China (PRC) | Consumer Staples

Tingyi EquityJulyResearch3, 2026

TARGET | ESTIMATE CHANGEExpect Modest Earnings Growth in 1H26;

RATING BUYMaintaining Buy

PRICE HK$10.16^

We expect Tingyi to report 1H26 NP growth of 2.3% YoY to HK$2.3bn on

HK$15.00 (HK$16.00) |

revenue growth of 1.6% YoY. Noodles should remain resilient, supported PRICE TARGET | % TO PT +48%

by volume growth, while beverages face intense competition despite solid 52W HIGH-LOW HK$13.70 - HK$9.42

RTD tea demand. We lower FY26–28 earnings by 8–10% on higher raw FLOAT (%) | ADV MM (USD) 33.0% | 29.07

material costs but maintain Buy. Our TP is reduced to HK$15 (from HK$16), MARKET CAP HK$57.3B | $7.3B

as valuation remains attractive and earnings visibility has improved ahead TICKER 322 HK

of the August results. ^Prior trading day's closing price unless otherwise

noted.

We expect Tingyi to report 1H26 net profit of HK$2.3bn, up 2.3% YoY, on revenue growth

of 1.6% YoY to HK$40.7bn. This is broadly in line with management's guidance provided at Cal CHANGE TO JEFe JEF vs CONS

the FY25 results briefing, where it indicated that both sales and earnings would deliver positive 2026 2027 2026 2027

growth in 1H26. For reference, 1H25 included a one-off gain of approximately RMB160m. In REV <-1% <-1% NM NM

addition, Tingyi continued to benefit from favorable raw-material costs through most of 1H26, EPS -8% -9% NA NA

particularly up to May.

Based on our channel checks, 1Q26 tracked in line with management's expectations, with 2026 (RMB) 1Half 2Half Cal

both revenue and net profit delivering low-single-digit growth. Trends in 2Q26 also remained EPS -- -- 0.77

broadly on track, although we observed some demand volatility in May. Demand for staple PREV 0.83