[ET Net News Agency, 9 November 2020] Morgan Stanley cut its target price for Nissin
Foods (01475) to HK$9.2 from HK$9.8 and maintained its "overweight" rating.
Nissin expects sales to hold at 10% in HK and at teens % for Mainland China in 2020 with
a 20-25% increase in reported net profit (after charging Rmb40mn donation). It also sees
stable raw material costs as well as higher A&P investments in 2H for sustainable growth.
The research house now estimated 9% sales and 9% earnings growth in 2H or recurring
earnings growth of 43% in 2H adding back the Rmb40mn one-off donation expense (Rmb20mn
booked in other expenses in 3Q).
Nissin expects 10% sales growth in Mainland China and will continue to invest in
national penetration, riding the premiumization trend and widening the consumer base.
Nomura adjusted its earnings estimates by 9%, 7%, and 5% for 2020-22, respectively, to
reflect the donation expense and the margin impact from the distribution business in the
early stage. (KL)
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01475 NISSIN FOODS
Nominal 
4.960 -0.020 (-0.402%) Research Report
09/11/2020 17:51
{I-bank focus}Morgan lowers Nissin Foods (01475) to HK$9.2
| Remark: | Real time quote last updated: 26/04/2024 13:25 |
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