Citigroup has lowered its net profit forecast for Want Want China in the fiscal years 2025 and 2026 to approximately RMB 4.2 billion and RMB 4.5 billion, respectively.
According to the research report released by Citigroup, they maintained a "buy" rating on Want Want China (00151), and slightly raised the target price by 0.3%, from HKD 6.6 to HKD 6.62. Citigroup has introduced earnings forecasts for Want Want China for the fiscal year 2027.
The bank stated that it has lowered the company's revenue forecast for the fiscal years 2025 and 2026 by 7% and 9%, respectively, to reflect the sluggish consumer demand from April to June. It further increased the assumption of the company's gross margin (particularly due to the cost reductions of milk powder), and the change in net profit forecast of the company was far smaller than that of the sales forecast. The net profit forecast for the fiscal years 2025 and 2026 has only been lowered by 2% and 5%, respectively, to approximately RMB 4.2 billion and RMB 4.5 billion.
