Want Want China (0151.HK): Likely GPM recovery to offset topline softness in FY27E

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Want Want China (0151.HK): Likely GPM recovery to offset topline softness in FY27E

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14 Jul 2026 01:39:03 ET │ 15 pages

Want Want China (0151.HK)

Likely GPM recovery to offset topline softness in FY27E

CITI'S TAKE

While Want Want’s FY26 (ended Mar 2026) NP fell 12% YoY to Rmb3.8bn, we

saw a bright spot of 4% YoY topline expansion on HSD volume growth, as

channel diversification (twds snack specialty retailers, emerging channels, Buy

OEM and content e-commerce) and overseas expansion offset traditional- Price (13 Jul 26 16:10) HK$3.32

channel pressure. It cut FY26 dividend payout to 30% (FY25: 40%), retaining

cash for capex, potential overseas M&A amid macro uncertainties. Into FY27E, Target price HK$4.30↓

we expect the company to face increased topline headwinds, as softness in from HK$7.11

traditional channels persists amid weakened consumption sentiment & Expected share price return 29.5%unfavorable weather in FY27E-to-date. On a positive note, we expect a GP

margin recovery starting from 1HFY27E (given milk powder costs tailwind) to Expected dividend yield 3.2%

offset its possible topline softness, leading to YoY stable NP in FY27E. With Expected total return 32.7%

this note, we transfer coverage of Want Want (151.HK) to Vincent Young from Market Cap HK$39,182MXiaopo Wei. Maintain Buy rating with new TP of HK$4.30.

US$4,996M

Operating outlook — Per mgt, FY27E has started with softer sell-through across the

industry in 1QFY27E (Apr-Jun). Emerging channels and snack specialty retailers

continued to grow "strongly", while traditional and modern channels remained under

pressure. On costs, mgt has locked in imported whole milk powder prices for the Price Performance

next 6-9 months and expects its FY27E unit cost to fall YoY.