According to a report published by Goldman Sachs, the management of Blue Moon (06993) said it will continue to invest in the expansion of sales staff to penetrate to offline cities, and will also promote products by sponsoring national athlete activities. Therefore, the bank expects the company's sales and expenditure ratio to rise 1.5 percentage points year-on-year to 25.3% in 2023.
The bank lowered Blue Moon's earnings per share forecast for 2023-2024 by 14% and 16%, respectively, to reflect declining revenue forecasts due to weak consumption power, expanding sales expenses, and exchange rate updates. Since demand was generally weak before the Dragon Boat Festival, it is believed that laundry detergent is under pressure in the short term. The target price was lowered from 5.74 yuan to 5.04 yuan to maintain the “neutral” rating.