The Zhitong Finance App learned that UBS released a research report stating that it maintains the “buy” rating of Master Kong Holdings (00322), believes that Master Kong's valuation is attractive, and reaffirms that the dividend rate is 100%. The target price was raised from HK$11.29 to HK$11.78.
The report points out that the company's management targets for the revenue growth of the company's instant noodles and drinks business this year are low to medium units and medium to high units, and indicates that efforts will be made to improve the profitability of these two businesses in the future. Management emphasized that it will pay more attention to value compared to sales growth and market share growth.
The bank believes that Master Kong's strong value proposition, combined with improving product innovation and channel management (focusing on new channels for rapid growth), and an overall stable cost environment, can support the company's gross profit expansion. It is estimated that the compound annual profit growth rate from 2023 to 2025 will reach 11%.