Glonghui, May 27 | Morgan Stanley published a research report stating that Unification may face tougher competition in the second quarter of FY2024, which will cause its sales growth to slow down and weaken its sales leverage. Sales are expected to increase 8% in FY2024. The bank expects that the profit margin expansion in the first quarter of this year is unlikely to occur again, and believes that the company's utilization rate will weaken in the second and third quarters of this year. The bank believes that the company's better product portfolio and lower promotion level may continue in the 2024 fiscal year and effectively increase the company's profit margin. Additionally, considering the strong sales momentum of the beverage business in the first quarter of FY2024, Damo raised its sales forecast for the 2024-2026 fiscal year by 1% to 2%; raised its gross margin forecast by 1.5 percentage points; raised its earnings forecast per share for the 2024 fiscal year by 19%; and the earnings per share forecast for the 2025 and 2026 fiscal years increased by 26% and 28%, respectively. Damo raised the unified target price from HK$4.9 to HK$6.6, and the rating was raised to “synchronize with the market” accordingly.
大行评级｜大摩：上调统一目标价至6.6港元 评级上调至“与大市同步”
Big Bank Rating | Damo: Raise the unified target price to HK$6.6, and the rating will be upgraded to “keep pace with the market”
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