Gelonghui, November 29 | Jefferies published a report stating that China Wangwang's sales and net profit for the first half of the 2024 fiscal year increased by 4.1% and 8.5% year-on-year, mainly due to the increase of 7.1% and 4.5% in the dairy products and beverages and rice crackers business, respectively. Due to lower costs of raw materials such as palm oil and packaging materials, gross margin increased by 2.4 percentage points. For the second half of fiscal year 2024, Wangwang's management expects positive revenue growth, and sales growth in the fourth fiscal quarter will offset the pressure brought about by a high base in the third quarter; benefiting from the easing of cost pressure, gross margin is expected to continue to improve. Jefferies maintained its “hold” rating, and the target price was lowered from HK$5.8 to HK$5.3.