Haitong International initiates coverage on WANT WANT CHINA with an "Outperform" rating, as profitability continues to improve

Haitong International's research report points out that WANT WANT CHINA (00151.HK) has become a nationally renowned leading enterprise in the food and beverage sector, with business coverage across various segments including rice snacks, dairy beverages, and leisure foods. The group is expected to see revenue growth in dairy beverages of 0.5%, 2%, and 2% from 2025 to 2027; rice snack business revenue growth of 3.5%, 2%, and 2%; and leisure food revenue growth of 5%, 4%, and 4%.

The firm expects WANT WANT CHINA's revenue for the fiscal years 2025 to 2027 to be RMB 24.05 billion, 24.65 billion, and 25.27 billion, respectively, representing year-on-year growth of 2.3%, 2.5%, and 2.5%; net profit attributable to the parent company to be RMB 4.17 billion, 4.41 billion, and 4.61 billion, with year-on-year changes of -3.8%, +5.7%, and +4.6%, corresponding to earnings per share of RMB 0.35, 0.37, and 0.39.

Haitong International, referencing comparable company valuations, gives the company a 15 times price-to-earnings ratio for the fiscal year 2025, corresponding to a target price of HKD 5.76, with a 15% upside potential, initiating coverage with an "outperform" rating