[ET Net News Agency, 29 January 2021] DBS Group Research cut its target price for
Nissin Foods (01475) to HK$7.75 from HK$8.4 and reiterated its "buy" rating.
The research house said Nissin Foods' share price corrected sharply by 30% post 2Q 2020
results. In Hong Kong, sales recovered slightly in 4Q due to resurgence in COVID in
November 2020, however, DBS expects sales to decline in FY2021 on a weak macro
environment. In China, it forecasted sales to rise by 9%, excluding the impact of the
distribution business.
Despite near-term pressures, DBS expects Nissin Foods will continue to gain market share
in the instant noodle sector. It forecasted earnings growth of 5% in FY2021, picking up to
13% in FY2022. (KL)