Yamato: Reiterate NISSIN FOODS (01475) "outperform" rating Target price raised to HK$5.88

Daiwa Research has released a research report stating that the overseas growth prospects of NISSIN FOODS (01475) have not been fully appreciated, reiterating its "outperform" rating with a target price raised from HK$4.9 to HK$5.88. The bank expects NISSIN FOODS to resume revenue growth momentum in the fourth quarter of last year, with a expected year-on-year growth of 10%. After integrating the newly acquired businesses in South Korea, Australia, and New Zealand, the bank estimates that the revenue in these three regions will exceed HK$200 million this year. Daiwa also mentioned that the NISSIN FOODS management expects the core Hong Kong business to grow by about 5% year-on-year this year, while mainland China revenue is expected to increase by 5%. The bank pointed out that the focus this year is on overseas markets, which are bright, and raised the group's earnings per share forecast for 2025 to 2026 by 2 to 6%.