Citi maintains a "Buy" rating on Anjoy Food, with a target price raised to 90 yuan

Citi published a research report predicting that driven by new products and channel advantages, Anjoy Food (02648.HK) will see an improvement in core business sales performance in the fourth quarter of last year. The gross margin may be slightly pressured due to rising raw material prices, and it is expected that the management will announce a 2026 sales target that will not be lower than the double-digit growth of 2025.

Citi raised its net profit forecast for Anjoy Food for 2025 to 2027 by 1% to 14%, increasing the target price from HKD 75.7 to HKD 90, which corresponds to a projected price-to-earnings ratio of about 18 times for 2026, and maintained a "Buy" rating. (gc/)