[ET Net News Agency, 4 February 2021] Daiwa Research lifted its target price for Nissin
Foods (01475) to HK$7.5 from HK$7.4 and maintained its "hold" rating.
Nissin Japan announced its unaudited 3Q FY2021 (CY4Q 2020) results, which provided a
reference on the China segment's top line and operating profit as revenue was in line,
with a potential positive surprise on operating profit, the research house said.
Daiwa said Nissin Foods' operating profit is likely to come above its forecast due to
likely positives from the read-across. It believes the better-than-expected operating
profit growth was driven by stronger-than-expected sales volume growth in Hong Kong during
4Q 2020, which contributed a higher-than-expected operating margin expansion on a low base
in 4Q 2019 and potential higher-than-expected subsidies from the Hong Kong government.
(KL)