UBS slightly lowers WL DELICIOUS target price to 15.5 yuan, maintains "Buy" rating

UBS published a report stating that WL DELICIOUS (09985.HK) achieved a year-on-year revenue and net profit growth of 15% and 33% respectively last year, reaching RMB 7.224 billion and RMB 1.425 billion (the same below), indicating a year-on-year growth of 12% and 55% in revenue and net profit in the second half of the year. The revenue growth aligns with the management's annual growth target of 15%; however, UBS believes that the growth in the second half of the year is slightly below market expectations. The net profit benefited from the expansion of gross profit margin and improvement in the ratio of selling and administrative expenses, meeting market expectations.

Considering the performance, UBS has revised down its net profit forecasts for WL DELICIOUS for 2026 to 2028 by 0% to 1%, and lowered the target price from RMB 16.5 to RMB 15.5, maintaining a "Buy" rating