According to Zhidao Finance APP, Daiwa released a research report stating that it reiterated its 'buy' rating on U-Presid China (00220). It is expected that the food business will increase by 1% to 2% YoY in the second half of this year, while the beverage business will maintain a YoY growth of 8% to 10%. Increasing market share will also support the group's revenue growth in the second half of the year. The profit forecast for 2024 to 2026 has been lowered by 0.2% to 0.8%, with a target price of HKD 7.8.

The report states that Uni-President's food income fell slightly year-on-year from April to May, while its beverage income increased by a high single-digit rate. For the first five months, the food and beverage businesses grew at low single-digit and low double-digit rates, respectively, in line with management's expectations. The bank believes that the impact of weak food business on overall profitability is limited, as the beverage business accounts for more than 90% of operating profit. Moreover, with a looser YoY base, improved consumer mobility, and continuous product upgrades, the bank expects the growth momentum of the group's food and beverage businesses to accelerate again in the second half of the year.