Core Viewpoint - Goldman Sachs has issued a "Buy" rating for Weilong Delicious (09985) with a 12-month target price of HKD 13.9, based on a 19x expected P/E ratio for 2027 and an 8.6% cost of equity discounting back to 2026. Despite fierce competition in the snack industry, the company is expected to achieve growth due to its first-mover advantage, brand image, and insights into konjac products and market dynamics [1] Group 1 - The company reaffirms its annual guidance with a projected sales growth of 15-20%, gross margin of 46-48%, and net profit margin of 17-20%. The company anticipates higher sales, general, and administrative expense ratios in the second half of the year due to increased online and offline marketing efforts, particularly for konjac and kelp products [1] - In Q3 2025, despite a high base, the company's performance remains robust, with monthly sales of the sesame konjac product reaching RMB 60-70 million in August and September, and seasoning noodle products showing signs of stabilization [2] - Discount stores are the fastest-growing channel, expected to contribute 25-30% of annual sales, with a long-term target of 30-35%. Traditional distributors are the most profitable channel, followed by discount stores, KA channels, and e-commerce [2] Group 2 - The company maintains an optimistic outlook on raw material costs, expecting prices of konjac flour to normalize by 2026-2027 as planting areas expand, despite previous high prices due to supply-demand imbalances [2] - The management has reiterated a sales target of approximately RMB 100 million for the year and is actively seeking partners in other Southeast Asian countries, with progress in product listings at major retailers like 7-11 and Lotus's [3]
高盛：予卫龙美味(09985)“买入”评级 目标价13.9港元