HSBC Global Research published a report stating that Want Want China (00151.HK) performance in FY2023 exceeds expectations. The bank believes that driven by the decline in raw material costs and overseas production capacity enhancement, the company's profit will further improve in FY2024. The rating remains 'buy', with a target price lowered from HKD 5.8 to HKD 5.5.

HSBC Research pointed out that due to the slower-than-expected recovery of domestic consumption, the revenue expectations for FY2024 were adjusted downward by 2.2% and for FY2025, it was lowered by 3.9%. However, considering the improvement in raw material costs and product mix, the gross margin expectations for the same period were increased by 0.6 and 0.5 percentage points, respectively. Considering the aforementioned changes and the share buyback program, the bank raised the EPS expectations for FY2024 by 3.1% and for FY2025 by 3.6%. It also predicted that revenue and EPS will grow by 3% and 4.1% annually in FY2026.