Macquarie predicts that China Wangwang (00151) revenue for the second half of fiscal year 2024 will increase 3% year on year, and operating profit and net profit will increase 19% and 25% year on year, respectively.
The Zhitong Finance App learned that Macquarie released a research report stating that it maintained China's Wangwang (00151) “outperforming the market” rating and lowered its net profit forecast for the 2024-2026 fiscal year by 1.6%, 1.4%, and 1.3%, respectively. Sales growth slowed due to the decontamination of snacks, and the target price was slightly lowered by 2% to HK$6.4 from HK$6.5.
The bank expects China Wangwang's revenue to increase 3% year on year in the second half of fiscal year 2024, and operating profit and net profit will increase 19% and 25% year on year, respectively, to reflect favorable investment costs. With the price of whole milk powder falling by double digits, it is expected that the company's gross margin will accelerate in the second half of fiscal year 2024 ending the end of March this year, and that operating profit and net profit will achieve double-digit year-on-year growth. Since the company actively repaid its dollar debt to optimize its debt structure, it did not announce an interim dividend.