Lates News

Citigroup published a research report pointing out that Kangshifu's group sales in the first half of the year decreased by 3% year-on-year, far behind Uni-President's 11% year-on-year increase and significantly lagging behind management's full-year guidance for 25 years. The core EBIT increased by 13% year-on-year, significantly lower than Uni-President's 37% year-on-year growth. Kangshifu's sales performance in the beverage and instant noodles business both lag significantly behind Uni-President. Kangshifu's continued weak revenue performance and continuous market share loss have been the structural concerns of the bank. Citigroup's target price for Kangshifu is HKD 10.1, with a "sell" rating. Citigroup's preference order in the Chinese food and beverage industry remains unchanged, with Nongfu Spring and Uni-President tied for first choice, and Kangshifu in last place. In the consumer goods sector, Citigroup continues to prefer a sustainable growth model, with stable revenue growth and profit margin expansion under positive operating leverage, rather than achieving weak revenue growth and gross margin expansion through aggressive average price adjustments (as Kangshifu did in 2024).