Gelonghui, January 10 | Jefferies released a rating report. It is estimated that Master Kong's net profit for the second half of 2023 will rise 11% year-on-year to 1.5 billion yuan, and sales growth will remain flat at 40.6 billion yuan. As for the pasta business, the bank expects sales to drop 3% year-on-year in the second half of 2023, with growth remaining flat in the third quarter and falling in the fourth quarter. The Group's gross margin is expected to improve year-on-year and semi-annually due to a slowdown in raw material cost pressure. The bank also expects sales in the beverage business to rise 2% year-on-year. Due to weak summer sales volume compared to expectations, management has adjusted its wholesale orders, causing growth to remain relatively flat in the third quarter and return to normal in the fourth quarter. The bank lowered the Group's net profit forecast for 2023, 2024 and 2025 by 13%, 24% and 24%, respectively, while sales forecasts were lowered by 4%, 8% and 10%, respectively. The bank expects sales growth of 2.4% this year, but based on the high base for the first half of last year and the trend in the second half of last year, sales growth is expected to remain flat in the first half of this year. The bank lowered its target price from HK$15.6 to HK$11.5, maintaining a “buy” rating.