Citi lowered the target price for Shandong Weigao to 6 yuan, expecting a revenue growth of 4% to 8% this year

Citi published a research report indicating that Shandong Weigao (01066.HK) is expected to have a revenue growth of 2.3% year-on-year to RMB 13.389 billion in 2025, while net profit is projected to decline by 22% year-on-year to RMB 1.612 billion, which is approximately 2% and 1% lower than the bank's and market expectations, respectively. Management reiterated its commitment to shareholder returns, maintaining a dividend payout ratio of 50%.

The bank cited management as stating that it expects stable prices in 2026, the launch of new products, and deeper expansion into overseas markets to drive annual revenue growth of 4% to 8%.

Considering management's latest guidance and the profit pressure from lower-than-expected forecasts, Citi has lowered its revenue forecasts for this year and next year by 5.2% and 8.1%, respectively, and reduced its earnings per share forecasts by 36% and 37%. It has also introduced earnings per share forecasts for the fiscal year 2028. The target price has been lowered from HKD 7.5 to HKD 6, maintaining a "Buy" rating