Goldman Sachs reiterates "Buy" rating on TINGYI, continues to be optimistic about this year's operating outlook

Goldman Sachs published a research report indicating optimism for TINGYI (00322.HK), which is more focused on developing its instant noodle business. This year, market share and operational efficiency are expected to improve. The company’s operating outlook for this year is positive, with profit forecasts for 2025 to 2027 raised by 5% to 8%. It is predicted that the operating profit margin for the instant noodle business will benefit from easing cost pressures, product price increases, and cost savings, raising the target price from HKD 12.7 to HKD 13.7, and reiterating a "Buy" rating.

As for its peer U-PRESID (00220.HK), Goldman Sachs has lowered its revenue forecasts for 2025 to 2027 by 1% to 4% to reflect the impact of intensified market competition on the beverage business, with profit forecasts reduced by 5% to 10%. Supported by the instant noodle and OEM businesses, it is currently estimated that U-PRESID's sales could grow by about 3.5% this year, with profits expected to increase by 1%. Correspondingly, the target price has been lowered from HKD 9 to HKD 8.2, maintaining a "Neutral" rating