China Want Want (00151.HK) is expected to see its net profit rise by 18% YoY to RMB 3.99 billion by the end of March 2024 according to a research report released by Jianyin International. This result is 5% higher than the market and the bank's expectations. Jianyin International believes that the increase in the prices of rice and snack foods will continue to support the company's revenue growth by 2025.

Jianyin International forecasts that by 2025, Want Want's gross profit margin will increase by 0.2 percentage points to 46.8% due to its ability to sustain market share and continue investing in product innovation and expanding channels. Therefore, the bank expects the pre-tax profit margin to expand by 0.1 percentage points to 23.9% in the same fiscal year.

Considering the better-than-expected net profit in the second half of the 2024 fiscal year and the weak consumer sentiment, the bank slightly increased the earnings forecast for the company in the 2025 fiscal year by 0.5% and raised the target price from $5.3 to $5.5, maintaining an 'outperform' rating.