Goldman Sachs: Cuts U-PRESID CHINA (00220) target price to 7.5 Hong Kong dollars, rating downgraded to "neutral"

Goldman Sachs has released a research report stating that it has lowered its profit forecast for U-PRESID CHINA (00220) for the years 2024 to 2026 by 8-10%, and its target price has been reduced from HK$8.04 to HK$7.5. The investment rating has been downgraded from "buy" to "neutral" to reflect the potential pressure on commodity costs the company may face in the future and the uncertain prospects for food sales growth next year. The company's third-quarter profit increased by 13% year-on-year to RMB 669 million, which is lower than the bank's expectation of over 30% growth. Although the gross profit margin expanded by more than 2 percentage points, it was offset by higher sales expenses.