智通财经网·2025-11-05 09:26Core Viewpoint - Goldman Sachs has issued a "Buy" rating for Master Kong Holdings (00322) with a target price of HKD 12.7, highlighting the company's potential to achieve its profit targets for FY2025 due to favorable pricing, cost advantages, efficiency improvements, and strict promotional management [1][2]. Group 1: Financial Performance and Projections - Master Kong's management aims for double-digit year-on-year growth in recurring net profit for FY2025, supported by pricing base effects, cost benefits, and efficiency measures [1]. - The company expects to restore revenue growth and improve profit margins in FY2026, focusing on efficiency enhancements [1]. - Instant noodle sales have shown a recovery in positive growth since July 2025, with carbonated beverages also maintaining positive growth in the third quarter [1]. Group 2: Cost Management and Pricing Strategy - The beverage business has benefited from favorable cost trends, with gross margins and overall profitability improving due to cost advantages [1]. - Palm oil costs increased by 10% year-on-year in Q3 but stabilized in October, easing compared to the first half of the year, which, along with price increases starting in 2024, is expected to drive margin expansion in FY2025 [1]. - Management indicated that during peak seasons, large-scale promotions were not conducted, although some channels increased spending to address competition; if sales remain weak in 2026, the pricing strategy for large-pack beverages may be reassessed [2].