---
title: "Goldman Sachs: Initiates WL DELICIOUS with a \"Buy\" rating and a target price of HKD 13.9"
description: "Goldman Sachs initiated coverage on WL DELICIOUS with a \"Buy\" rating and a target price of HKD 13.9. It is expected that the compound annual growth rates for sales and net profit from 2025 to 2027 wil"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/261566282.md"
published_at: "2025-10-17T07:24:11.000Z"
---

# Goldman Sachs: Initiates WL DELICIOUS with a "Buy" rating and a target price of HKD 13.9

> Goldman Sachs initiated coverage on WL DELICIOUS with a "Buy" rating and a target price of HKD 13.9. It is expected that the compound annual growth rates for sales and net profit from 2025 to 2027 will be 11% and 13%, respectively. Despite intensified competition in the konjac product market, Goldman Sachs believes that WL DELICIOUS still has good growth prospects due to its first-mover advantage and brand influence. It is expected that the net profit margin will increase from 18.9% in 2025 to 19.5% in 2027

According to the Zhitong Finance APP, Goldman Sachs has released a research report stating that it has initiated coverage on WL DELICIOUS (09985) with a buy rating, as the stock price has corrected 30% from its peak in April, and the current valuation reflects a good risk-reward ratio. The bank expects the company's average annual compound growth rate in earnings from 2025 to 2027 to be 13%, while the closest global peer, Calbee, has an average annual compound growth rate of 3% during the same period. The bank's 12-month target price is HKD 13.9, based on a 19 times expected price-to-earnings ratio for 2027, discounted back to 2026 at a cost of equity of 8.6%.

The report states that WL DELICIOUS is a well-known snack company in China, distinguished by its mature nationwide business layout and brand recognition in the fields of flavored noodle products and konjac products. As WL DELICIOUS holds a dominant market position with a 42% share in the konjac food sector (which is expected to contribute over 60% to the company's sales in 2025), the bank believes that the main points of contention in the market will revolve around: 1) the stage of konjac products and the impact of pricing amid increasing competition; 2) the growth potential of sales for such products given the company's dominant share in the konjac sector; 3) the trend of profit margins under the influences of competition, capacity utilization, raw material cycles, and operational leverage.

The bank acknowledges the intensifying competition in konjac products, but after analyzing the following points, it remains optimistic about the company's growth prospects from 2025 to 2027, expecting an average annual compound growth rate in sales/net profit to reach 11%/13%: 1) small enterprises are more susceptible to cost increases and price pressures due to their scale disadvantages; 2) WL DELICIOUS enjoys a first-mover advantage and can adapt to the increasingly competitive landscape with its nationwide coverage and resources; 3) combined with WL DELICIOUS's brand image and insights into konjac products and the market, the company has the potential for multiple enhancements in consumer penetration, channel expansion, SKU, and flavor variety. Additionally, the bank believes that WL DELICIOUS's optimization efforts in automation/increasing capacity utilization/operational leverage and favorable konjac raw material costs are expected to drive the company's net profit margin from 18.9% in 2025 to 19.5% in 2027

### Related Stocks

- [09985.HK - WL DELICIOUS](https://longbridge.com/en/quote/09985.HK.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| KGI 凱基委任龍淵為財富管理董事總經理 鞏固競爭優勢 | KGI 凱基委任龍淵為財富管理董事總經理，標誌著其在財富管理業務的戰略性拓展。龍淵將常駐香港，負責推動財富諮詢業務及擴展產品分銷策略。他曾在滙豐等國際金融機構擔任重要職務，成功推動滙豐中國區的財富管理發展。此任命將提升凱基在國際財富管理的競 | [Link](https://longbridge.com/en/news/275614810.md) |
| 特朗普與李龍基｜阮子曦 | 環球股市近期持續下跌，作者探討美國總統川普與 TVB 演員李龍基的相似之處。兩位「皇帝」級人物都擅長製造話題和吸引眼球，尤其在感情方面表現突出。然而，作者認為他們在真正改變歷史或劇情方面的貢獻有限。李龍基以其演藝事業和感情新聞維持存在感，而 | [Link](https://longbridge.com/en/news/275110700.md) |
| 懷舊經濟：品牌如何通過你的記憶獲利 | 從電影重啓到復古零食復興，我們探討了懷舊營銷這一價值數十億美元的行業，以及公司如何利用你的記憶來推動銷售 | [Link](https://longbridge.com/en/news/276011960.md) |
| 民主黨阻止撥款法案通過 美國土安全部面臨停擺 | 美國參議院民主黨人投票阻止一項為國土安全部提供資金的撥款法案，導致該部門面臨停擺。投票結果為 52 票贊成、47 票反對，未能達到推進法案所需的 60 票。停擺將影響多個關鍵機構，包括聯邦緊急事務管理局和運輸安全管理局。參議院共和黨計劃提出 | [Link](https://longbridge.com/en/news/275824701.md) |
| 我們的酒精注入業務讓燻鮭魚擁有搖滾風格 | 詹姆斯·伊格爾（James Eagle）於 2014 年創立了 The Pished Fish，這是一家以酒精浸泡燻鮭魚而聞名的英國手工品牌，創立之初是因為他被解僱於銷售工作。該業務起初從一個小棚子開始，尤其在 COVID 期間，業務顯著增 | [Link](https://longbridge.com/en/news/275863610.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
