[ET Net News Agency, 28 November 2019] Morgan Stanley lifted its target price for
Tingyi (Cayman Islands) Holding (00322) to HK$14 from HK$8.6 and double-upgraded its
rating to "overweight" from "underweight".
The research house expects market share gains in noodles, improving efficiency, and
potential acceleration in earnings growth with strong FCF yield to drive Tingyi's stock to
re-rate.
Morgan said noodles accounted for 60% of Tingyi's recurring segment EBIT in 2018 versus
beverages at 37%. It expects Tingyi's noodles business to improve sequentially from 2H,
driven by market share gains as a result of promotions and improved channel margin in 1H.
It also expects Tingyi's premiumization strategy and channel de-layering reform to
support Tingyi's beverage growth, while the negative impact from declining sales in water
and RTD (ready-to-drink) tea will likely abate in 2H 2019 and 2020. (KL)
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00322 TINGYI
Nominal 
8.300 -0.070 (-0.836%) Others
28/11/2019 15:59
{I-bank focus}Morgan upgrades Tingyi (00322) to HK$14
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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