Dahe: Unifying the 2024 revenue target to rise by 5% annually, slightly exceeding expectations

On December 31, Jinshi Data reported that Daiwa’s research report pointed out that Uni-President (00220.HK) has adjusted its annual revenue rise target to 5% for this year. This is the lower limit of the income rise guidance (5% to 8%) given to the company during its mid-term performance. The bank believes that this is slightly better than market expectations, as some investors expect that the recent weak consumption atmosphere in the mainland may not meet the previous guidance. Daiwa pointed out that the price of palm oil has dropped by about 10% since its recent high point in November 2024, which has to some extent alleviated the market’s concerns about the contraction of Uni-President’s gross profit margin. In a favorable competitive environment where major competitors raise prices and raw material costs decrease, the buy rating for Uni-President is reiterated.