Unification Enterprise China (00220) rose by more than 4%. As of press release, it rose 3.86% to HK$6.99, with a turnover of HK$7.67 million.
The Zhitong Finance App learned that Unification Enterprise China (00220) rose by more than 4%. As of press release, it had risen 3.86% to HK$6.99, with a turnover of HK$7.67 million.
According to the news, the Daiwa Report indicates that the first-quarter profit of unified enterprises in China doubled to 457 million yuan year-on-year, mainly driven by the year-on-year expansion of gross margin by 4 to 5 percentage points. Of this, about 2 percentage points contributed to higher utilization rates, and about 1 percentage point came from the contribution of reducing raw material costs.
The bank believes that unification will benefit from improved competitive dynamics in China's soft drink industry in the first half of this year, strong demand, and increased retail prices from major rivals Master Kong and Coca Cola. Furthermore, the bank believes that Unification can gain sales share through a stable pricing strategy. The profit forecast for 2024 to 2026 was raised by 23% to 26%, the target price was raised from HK$6 to HK$7.8, and the rating was upgraded from “hold” to “buy”.