[ET Net News Agency, 8 November 2019] Daiwa Research tweaked its target price for
Nissin Foods (01475) to HK$6.95 from HK$6.81 but downgraded its rating to "hold" from
"outperform".
The research house said Nissin Foods'3Q net profit of HK$78m was lower than Daiwa's
expectation, due to a 30% fall in operating profit and higher-than-expected channel
investment.
Management expects raw-material cost pressures in Hong Kong and increased revenue
contribution from MCMS, its distribution business. Daiwa expects advertising and promotion
activities to rise in 4Q due to the peak noodles season ahead. It cut its 2019-21 EPS
forecasts by 1-5% on increased selling and distribution expenses in 3Q. (KL)