Zhi Tong Cai Jing·2025-09-29 08:47Core Viewpoint - DBS maintains a "Buy" rating for Master Kong Holdings (00322), lowering the target price from HKD 14.1 to HKD 13.5, with a target P/E ratio of 17 times based on a 7% dividend yield [1] Group 1: Sales and Market Position - Master Kong's instant noodles and 1-liter beverage products saw a decline in market share compared to competitors like Uni-President China (00220) and Nongfu Spring (09633) after price increases last year [1] - The company is expected to experience a slight decline in revenue this year, with a moderate recovery of 4% anticipated next year, driven by investments in refrigeration to enhance channel penetration and strategic growth in emerging channels, including e-commerce and retail membership [1] Group 2: Performance and Profitability - The company is projected to meet the lower end of its performance guidance this year, with instant noodle sales expected to decline in low single digits and beverage sales also slightly down [1] - Material cost trends are expected to remain generally favorable, with stable profit margins anticipated in the second half of the year despite a year-on-year increase in palm oil prices [1] - Overall, the earnings forecast for the company has been reduced by 4% and 1% for this year and next year, respectively, with a projected year-on-year profit increase of 6% after excluding one-time factors from the first half of the year [1]