Goldman Sachs: Cuts Uni-President China (00220.HK) target price to HK$8.36, expects solid third-quarter sales

According to Zhitong Finance APP, Goldman Sachs released a research report stating that it expects Uni-President China (00220.HK) sales in the third quarter to remain roughly flat year-on-year, as product mix upgrades and prudent and flexible investment help partially offset cost pressures, and it believes profit margins will be resilient. However, Goldman Sachs expects the beverage business will still be dragged down by weak consumer sentiment and unfavorable weather from July to August, with milk tea expected to remain the main growth driver, while ready-to-drink tea and juice will continue to face competition; under premiumization and a more rational competitive environment, instant noodles are expected to continue the growth trend from the first half of the year. It maintains a "Neutral" rating and lowers the target price from HK$8.8 to HK$8.36.