In "Major Banks," CITIC Securities lowers the target price for U-PRESID to 10 yuan and maintains the "outperform industry" rating

CICC published a report stating that U-PRESID CHINA (00220.HK) announced its 2025 performance, with revenue and net profit increasing by 4.6% and 10.9% year-on-year, respectively. After excluding one-time investment losses, the non-recurring net profit increased by 17.6% year-on-year; the non-recurring net profit in the fourth quarter of last year was RMB 140 million, a year-on-year decrease of 35%, slightly below market expectations, mainly due to weaker-than-expected beverage performance. In the second half of last year, the food segment performed steadily, while beverage revenue was under pressure due to competition. Benefiting from cost advantages and capacity utilization, the company's gross profit margin continued to improve. The overall steady trend remains unchanged, and profit margins are expected to continue improving.

Due to intense competition in the beverage sector, the bank lowered its 2026 net profit forecast by 6% to RMB 2.32 billion, introduced a 2027 profit forecast of RMB 2.46 billion, and reduced the target price by 13% to HKD 10, maintaining an "outperform the industry" rating