Glonghui, December 4 | Bank of America published a report lowering Mengniu Dairy's earnings per share forecast for 2023 and 24 by 7% and 9%, mainly due to macroeconomic effects and the low contribution of associated companies. The bank is more cautious about Mengniu's revenue forecast. Considering the rise in soft dairy prices, although revenue can still be worth paying attention to in the short term, relatively rational competition and improved cash flow/profit margins can provide a buffer. The bank believes that the first quarter of 2024 may be critical because Mengniu is likely to see accelerated growth companies compared to many other consumers' tough competition, so Bank of America sees positive risk rewards and has reiterated its “buy” investment rating, with a target price of HK$36.5. Bank of America expects Mengniu's revenue/core operating profit/profit to increase by 6.4%/15.5%/3% annually in 2023. The bank's forecast for Mengniu's earnings per share for 2023 is 6% lower than the market average.