According to a research report released by Macquarie, it has given a "Outperform" rating to u-presid china (00220). It is expected that the impact of this food safety incident on Uni-President will only be about 82 million yuan, and the beverage business is expected to continue to drive sales. The profit forecast for the next two years has been lowered by 4.6% and 5%, and the target price has been lowered from HKD 8.4 to HKD 8.
The bank pointed out that recently there have been rumors online that U-Presid's product "Lao Tan Sour and Spicy Beef Noodles" contained mouse heads, which raised food safety concerns. However, they believe that the impact is controllable because this product series only accounts for a few percentage points of the total sales of the group. They expect that the negative impact on the annual net income will not exceed 4.6%. U-Presid also encountered a similar incident in 2022 when the CCTV 3.15 Evening Gala exposed the hygiene problems in the production process of Lao Tan Sour and Spicy Cabbage, which caused a 40% decline in sales of cabbage products that year and a loss of about 150 million RMB due to the destruction of expired inventory and the reduction in inventory through price reduction.
