[ET Net News Agency, 26 January 2021] Morgan Stanley lifted its target price for Nissin
Foods (01475) to HK$9.3 from HK$9.2 and maintained its "overweight" rating.
The research house sees the company leveraging its premium position and margin
improvement potential, and expects strong sales growth in 4Q 2020 with sequential
improvement in Mainland margin.
For 1H 2021, Morgan forecasted 11% sales and 1% earning growth off a high base but it
also expects 2021 Mainland China sales of 14% (in Rmb) supported by penetration and higher
contribution from Shanghai JV.
It said Nissin's brand positioning is also distinctive in that it has strong brand
equity with a multinational brand and cultural heritage that can be traced back to 1948.
Morgan sees significant room for Nissin to expand nationwide, with 65% of its sales
currently coming from south China. The company is still developing its distribution
systems in north China and west China. (KL)