not vested
JPM Drops TP of MENGNIU DAIRY (02319.HK) to $44, Rates OverweightAccording to a research report from JPMorgan, MENGNIU DAIRY (02319.HK) management maintained its view of double-digit sales growth for the year, with gross margins expected to expand 30 to 50 bps, as it believed year-to-date results are on target.
The company expected a stronger performance in the second half of the year than in the first half, mainly due to a mixed base last year.
Distributors are cautious as they are concerned about possible consumer budget cuts. No major investments are planned for now.
JPM estimated that it will achieve its multi-year target of low double-digit sales growth and 30 to 50 bps of operating margin expansion.
The broker attributed its optimism to the company's continued improvement in execution, favourable product mix shift to higher margins and continued new product launches, and stable supply of quality raw milk through its equity investments and partnerships with key upstream dairy farms.
In addition, JPM lowered MENGNIU's 2023 to 2025 earnings forecast by 3% to 5%, with natural sales and earnings forecasted to grow 7.5% and 12% YoY each this year, and operating margin predicted to expand 50bps to 6.4%.
The company's sales and earnings are expected to grow at a compound annual growth rate of 10% and 18% respectively in 2023-2025.
JPM maintained an Overweight rating on MENGNIU, but lowered its target price from $46 to $44.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... -news/AAFN
It's all about "how much you made when you were right" & "how little you lost when you were wrong"