Gelonghui, November 10 | According to a report published by CICC, net profit for the first three quarters of unification increased by 28.1% year-on-year. Excluding disposal income from the Hefei plant, it is estimated that core net profit increased 6% year-on-year; the net profit for the third quarter alone was 11% year-on-year, in line with the company's expectations. In the third quarter of the beverage business, under a high base, sales grew steadily, the decline in food revenue narrowed, cost pressure eased, gross margin improved, and net profit margin increased year over year. According to the bank, the unified beverage business continued to grow in October, but instant noodle sales still faced pressure from a high base. The company has begun preparing goods for the Spring Festival, including the category of prepared dishes. The investment in beverage resources has been skewed towards catering and gift packaging. It is expected that the sales growth rate will gradually recover on a monthly basis from January next year. In terms of costs, sugar prices are currently falling on a monthly basis. It is expected that cost pressure will ease further, and profit growth will continue to be higher than revenue performance. Considering that raw material prices are still uncertain, the bank lowered its profit forecast for this year and next two years by 5% and 7.2% respectively. Due to declining market valuations, the target price was lowered by 19% to HK$6.5, maintaining the “outperform the industry” rating.