Citibank: Kangshifu's market share loss is worrying, giving it a "sell" rating and a target price of 10.1 Hong Kong dollars.

Citigroup released a research report stating that Kangshifu's group sales in the first half of the year decreased by 3% compared to the previous year, far behind Uni-President's 11% increase and significantly below the management's 25-year full year guidance. EBITDA increased by 13% compared to the previous year, significantly lower than Uni-President's 37% increase. Kangshifu's sales performance in the beverage and instant noodles business lagged significantly behind Uni-President. Kangshifu's continued weak revenue performance and continuous market share loss have been the structural concerns of the bank. Citigroup has a target price of 10.1 Hong Kong dollars for Kangshifu, with a rating of "sell." Citigroup's preference order in the Chinese food and beverage sector remains unchanged, with Nongfu Spring and Uni-President as the top choices, and Kangshifu is ranked last. In the consumer goods sector, Citigroup continues to favor a sustainable growth model, which includes steady revenue growth and profit margin expansion under positive operating leverage, rather than weak revenue growth and margin expansion achieved through aggressive average price increases.