Jin Wu Financial News | According to the Morgan Stanley Research Report, Mengniu Dairy (02319)'s earnings forecast per share for this year and next two years was lowered by 8-9%. Since demand is likely to continue to be tepid in 2024, it will take time for new products to drive growth, and sales forecasts for 2024 and 2025 will be lowered by 2% and 3%, respectively. The bank expects the company's total sales to increase by 4% and 5% in 2024 and 2025, respectively.
According to the bank, due to withholding tax provisions, Mengniu's effective tax rate will be higher, and the profit per share is expected to be 1.74 yuan in 2026. The bank lowered the company's target price by 13.3% from HK$30 to HK$26. The bank believes that in terms of growth prospects compared with the main raw material peers, the stock's valuation is still attractive, and the rating “outperforms the market.”