VITASOY INT'L (00345) saw its stock drop nearly 4% in the early session, and as of this report, it has fallen by 2.78%, trading at 9.1 Hong Kong dollars, with a trading volume of 61.4696 million Hong Kong dollars.
According to Zhituo Finance APP, VITASOY INT'L (00345) fell nearly 4% in the morning session and as of the time of writing, it is down 2.78%, priced at 9.1 HKD, with a transaction volume of 61.4696 million HKD.
In terms of news, VITASOY INT'L announced its annual results for the year ending March 31, 2025, with revenue of 6.274 billion HKD, a year-on-year increase of 1%; net profit attributable to equity holders of 0.235 billion HKD, a year-on-year increase of 102%; EBITDA reached 0.836 billion HKD, a year-on-year increase of 22%; it intends to declare a final dividend of 10.2 HKD cents per share, compared to 6.3 HKD cents in the same period last year. Additionally, VITASOY INT'L's executive chairman, Luo Youli, stated at the Earnings Conference that the mainland market is facing intense price competition, with lemon tea products in the mainland reduced by 10% to 15% as of the end of March this year; however, prices have now stabilized, and it is forecasted that there will be no further price reductions in the mainland market. It is believed that the company's products have considerable competitiveness, the market has reached a saturation point, and there is no intention to adjust prices in the Hong Kong market.
Citi released a Research Report stating that VITASOY INT'L's net income for FY2025 is 4% lower than the bank's forecast. Additionally, due to intensified competition in the beverage Industry in mainland China, the bank has lowered its cash flow discount (DCF) benchmark, based on an unaltered 8.1% weighted average cost of capital (WACC), adjusting its Target Price from 9.6 HKD to 9.4 HKD, maintaining a 'hold' rating. The report pointed out that VITASOY has no intention of further price cuts and plans to increase market share through improving execution, innovation, and distribution. Citi believes that although the strategy seems to have long-term potential, it requires time, thus maintaining caution regarding its short-term sales performance.
