According to the intelligence finance and economics app, DBS issued a research report stating that it reiterated the buy rating for U-presid China (00220), expecting its profits to increase by 7% YoY in the second half of the year due to continued sales growth. The revenue growth forecast for the next two years was raised by 17%, and the target price was raised from HKD 6.5 to HKD 7.9.

The report stated that the company's profit for the first half of the year increased by 10% YoY, in line with market expectations and exceeding the bank's expectations. The increase was due to a 2.7 percentage point expansion in gross margin, thanks to the decrease in raw material costs, improvement in production efficiency, and better product mix. The bank expects that the sales growth of the company's ready-to-drink beverages will continue to outperform that of its ready-to-eat foods, indicating that outdoor consumption will recover in the second half of the year, and the company is actively expanding its sales channels. In contrast, ready-to-eat foods may continue to face moderate pressure in the dining channel. The bank expects that the compound annual growth rates of revenue for the company's ready-to-drink beverages and ready-to-eat foods from 2023 to 2025 will be 7% and 1.5% respectively.