Want Want China Holdings Ltd
00151: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$7.50 | Mjnqgp | Shzcsrwxd |
Near-Term Profit Headwind Remains for Want Want; Lowering FVE to HKD 6 per Share
Narrow-moat Want Want reported fiscal 2022 (ending March 31, 2023) first-half results with the top line moderately below our estimates and net profit lower than our forecasts. Revenue fell year on year as a result of weak demand for its dairy products, while elevated costs and operating deleveraging dragged margins. Management expects gradual improvement in fiscal second-half margin levels, but casts a cautious tone regarding demand outlook.