HK Stock Market Move | WANT WANT CHINA (00151) fell more than 4% in the afternoon, Macquarie said that cost inflation may start to appear from the first quarter of the 2026 fiscal year.

WANT WANT CHINA (00151) fell more than 4% in the afternoon, dropping 3.37% to 4.88 Hong Kong dollars as of press time, with a trading volume of 15,872.9 million Hong Kong dollars. On the news front, Macquarie released a research report stating that it lowered WANT WANT CHINA's target price by 4% from 4.7 Hong Kong dollars to 4.5 Hong Kong dollars, with a neutral rating. It raised the net profit forecast for the 2025 fiscal year by 1.6%, but lowered the net profit forecast for the 2026 and 2027 fiscal years by 4.8% and 5.9% respectively, mainly due to the rise in the price of whole milk. It is expected that the company's dividend payout ratio for the 2025 fiscal year will be 71%, equivalent to a cash dividend yield of 5.2%. Macquarie stated that it expects WANT WANT CHINA's sales growth to return to positive levels in the second half of the 2025 fiscal year, with expected year-on-year revenue growth of 1.5% and net profit growth of 4.6%, benefiting from favorable raw materials. Due to the restructuring of product categories, there has been a significant improvement in Want Want's sales momentum, better meeting customer needs. The company's overseas demand remains strong. The bank pointed out that cost inflation is expected to start showing from the first quarter of the 2026 fiscal year due to the 30% increase in the price of whole milk powder from its low in 2024 to $4,062 per ton. It is worth noting that WANT WANT CHINA released its financial performance for the first half of the 2025 fiscal year in November 24.