According to the report released by Macquarie, Vitasoy Int'l (00345) is rated outperform with a target price of HK$9.5 due to its latest performance and macro-economic prospects. Net income predictions for fiscal year 2025 to 2026 were lowered by 8.8% and 9.6% respectively from HK$10.5 to HK$9.5.

In the report, it was stated that Vitasoy achieved a 6% increase in sales during the second half of the 2024 fiscal year, compared to a 3% decline during the first half. It is believed that this growth was mainly due to improvements in domestic business and strong performance in the Hong Kong market, which offset the negative impact of their New Zealand business.

The bank predicts that Vitasoy will focus on improving its profit margins in the future, with an expected increase of 2.3 percentage points in gross margin to 49.5% in the second half of the fiscal year 2024, higher than the bank's forecast of 48.7%. The management is expected to further improve profitability in the fiscal year 2025 through more precise marketing, cost control, and operational leverage.