[ET Net News Agency, 29 January 2021] DBS Group Research lifted its target price for
Uni-President China (UPC) (00220) to HK$10.6 from HK$8.8 and maintained its "buy" rating.
The research house said UPC's newly launched sugar-free product, chaliwang, should see
strong momentum as demand remains robust for non-sugar products but the contribution is
small at this juncture.
While mass-market noodle sales are expected to turn negative in FY2021, DBS is still
positive on UPC's development in Kai-Xiao Zhao, which has launched new instant rice in
January 2021 (pig stomach x chicken), retailing at roughly Rmb25/pack.
DBS forecast FY2021 earnings to grow by 13%. (KL)