Zhi Tong Cai Jing·2025-08-12 08:41Core Viewpoint - Morgan Stanley's report indicates that Master Kong Holdings (00322) experienced a 2.7% year-on-year decline in sales for the first half of the year, while adjusted earnings rose by 12%, aligning with market expectations. The firm believes that Master Kong's high dividend yield provides downside protection in the Chinese consumer market, making it more attractive amid a sluggish macroeconomic environment and consumer sentiment, thus maintaining an "Overweight" rating [1] Group 1 - Master Kong's EBIT profit margin expanded by 1.7 percentage points to 9.2% [1] - The company's instant noodle market share loss has normalized, which is expected to support positive sales growth in the second half of the year [1] - The beverage segment faces challenges due to intensified competition and slowing demand [1] Group 2 - Morgan Stanley compares Master Kong's performance with Uni-President Enterprises China (00220), which has an EBIT profit margin of 9.6% [1] - The overall macroeconomic and consumer sentiment remains subdued, impacting the industry [1]