Want Want (151 HK): Hold: Valuation anchor affected by uncertainty

研报英文原文证据摘录

Want Want (151 HK): Hold: Valuation anchor affected by uncertainty

od. ROE (%) 20.5 14.6 14.3 13.3

Limited visibility on dividend policy: Beyond fundamentals, uncertainty around 52-WEEK PRICE (HKD)

shareholder returns remains a key valuation overhang. The dividend payout ratio has 6.30

fallen from 79% in FY22 to 29% in FY25, with no clear guidance. FY26 dividend yield 4.55

is about 2.5%, well below the sector average. In our view, this reduced yield is a core

2.80

driver of the stock’s lower valuation. 07/25 01/26 07/26

Target price: 3.20 High: 5.94 Low: 3.16 Current: 3.46

Earnings estimate changes: Reflecting distributor restructuring and the revised

Source: LSEG IBES, HSBC Qianhai Securities estimates

sales strategy, we cut our FY26-27e revenues by 5.8% and 6.5% and reduce FY26-27e

gross margin assumptions by 1.5ppt and 1.7ppt, respectively, on expectations of lower

Darron Xue* (Reg. No. S1700518110002)

volume and utilisation. We also raise our selling expense ratio forecasts by 2.0ppt in Analyst, A-share Food & Beverage and Pulp & Paper

FY26e and 1.8ppt in FY27e as incentives are reshaped to support distributor profitability. HSBC Qianhai Securities Limited

darron.xue@hsbcqh.com.cn

Overall, we lower net profit estimates by 23.9% in FY26e and 23.8% in FY27e and +86 755 8898 3407

introduce our FY28e forecasts. Kathy Song* (Reg. No. S1700517120001)

Head of A-share Consumer Research

Maintain Hold; lower TP to HKD3.20 from HKD4.70: We continue to value the stock HSBC Qianhai Securities Limited

kathy.l.h.song@hsbcqh.com.cn

on a PE basis and roll the base year over from FY26 to FY27. We now expect a net profit +86 21 5066 2007

CAGR of -4.3% over FY25-28e (previously 4.1% over FY25-27e), below the 4.8% historical

CAGR over FY17-24.