Daiwa released a research report stating that under favorable competitive conditions with major competitors raising prices and a decline in raw material costs, U-PRESID CHINA (00220) reaffirms its 'Buy' rating.
The company has adjusted its year-on-year revenue growth target for this year to 5%. This is the lower limit of the revenue growth guidance (5% to 8%) given for the company's mid-term performance. The bank believes that the company's guidance is slightly better than market expectations.
In addition, Daiwa stated that palm oil prices have decreased by about 10% since the recent peak in November 2024, which has somewhat alleviated market concerns about the contraction of U-PRESID's gross margin.
