DBS released a report stating that Want Want China's (00151.HK) performance for the fiscal year 2024 ending in March met market expectations. Net profit increased by 18% year-on-year, benefiting from a 2.7 percentage points increase in gross margin. The final dividend was 3.3 US cents, and the dividend payout ratio was reduced to 70%. For the fiscal year 2023, it was 79%.

According to the report, Want Want China increased its promotion efforts of dairy drinks from April to May, but the company still maintained low to moderate income growth in rice crackers and dairy products, while facing pressure in leisure food revenue such as ice cream.

DBS has raised its profit forecast for Want Want China in fiscal year 2025 by 2%. Currently, the stock price is equivalent to a P/E ratio of 11 times the estimated fiscal year 2025, with a dividend yield of about 7%, which is quite attractive. The rating has been upgraded from 'hold' to 'buy', and the target price has been raised from 5.4 yuan to 5.85 yuan.