BOCI Securities Limited: Maintains a "buy" rating on U-PRESID CHINA (00220) with the target price raised to 9.3 Hong Kong dollars.

Citic Securities International has issued a research report stating that it maintains a "buy" rating on U- PRESID CHINA (00220) with a target price raised to 9.3 Hong Kong dollars. U-PRESID CHINA's revenue and net profit increased by 6.1% and 10.9% respectively year-on-year, both in line with expectations. Among them, the beverage business increased by 8.2% year-on-year, and the food business increased by 1.5% year-on-year. The comprehensive gross profit margin increased by two percentage points to 32.5% year-on-year, with gross profit margins of 26.5% and 36.6% for the food and beverage businesses, respectively. The bank stated that Unilever's revenue target for this year is a year-on-year increase of no less than 6%, and in the first two months of this year, both the food and beverage businesses achieved double-digit sales growth with benign channel inventory, bringing some surprises to the market. The expansion of net profit margin will mainly rely on optimizing product mix and improving efficiency.