Lyon: Upgrade Unified Enterprise China (00220.HK) target price to HK$10.5, first half-year performance exceeds expectations.

According to the Securities Times APP, Lyon released a research report stating that the revenue of Uni-President China (00220.HK) in the first half of the year increased by 10.6% compared to the same period last year, exceeding market expectations by 2%, mainly due to the growth in outsourcing revenue. Profit increased by 33% year-on-year, exceeding market expectations by 6 to 7%, benefiting from the lower sales expenses ratio. The bank believes that although the growth rate of the beverage business in the second half of the year may slow down, it will be offset by higher outsourcing revenue and better-than-expected profit margin expansion. The bank has raised profit forecasts for 2025 and 2026 by 5% and 2% respectively, with a target price raised from 10.3 Hong Kong dollars to 10.5 Hong Kong dollars, equivalent to a forecasted P/E ratio of 16 times. The bank maintains an "outperform the market" rating and expects a full-year revenue growth of 8.5% year-on-year, with a 0.5 percentage point expansion in gross profit margin.