CICC: Maintain Sparkle Group's outperform industry rating, target price of 555 Hong Kong dollars.

date
28/08/2025
The research report released by Zhongjin stated that Mengniu Group is still expected to achieve double-digit revenue growth next year by steadily expanding its stores and maintaining strong control over profitability. The bank raised its forecast for the company's net profit attributable to shareholders for the years 2025-2026 by 9% and 4% to 5.93 billion and 6.74 billion yuan. The current stock price corresponds to a P/E ratio of 27x-23x for the years 2025-2026. The bank maintains an outperforming industry rating. Considering the high base effect pressure brought by food delivery subsidies this year, the target price is maintained at 555 Hong Kong dollars, corresponding to a P/E ratio of 33x-28x for the years 2025-2026, with an upside potential of 21%.