According to the report released by Morgan Stanley, they have given U-Presid China (00220) a "outperform" rating and estimated that the recent food safety incident will only cost the company around 82 million RMB. They are optimistic that the beverage business will continue to boost sales. As a result, they have lowered the profit forecast by 4.6% and 5% for the next two years and decreased the target price from HKD 8.4 to HKD 8.

The bank pointed out that recently there have been rumors online that U-Presid's product "Lao Tan Sour and Spicy Beef Noodles" contained mouse heads, which raised food safety concerns. However, they believe that the impact is controllable because this product series only accounts for a few percentage points of the total sales of the group. They expect that the negative impact on the annual net income will not exceed 4.6%. U-Presid also encountered a similar incident in 2022 when the CCTV 3.15 Evening Gala exposed the hygiene problems in the production process of Lao Tan Sour and Spicy Cabbage, which caused a 40% decline in sales of cabbage products that year and a loss of about 150 million RMB due to the destruction of expired inventory and the reduction in inventory through price reduction.