Core Viewpoint - Unified Enterprises China (00220) reported flat revenue in Q3, with improved gross margin due to lower raw material costs and premium instant noodle offerings, but overall performance was dragged down by weak revenue and reduced operating leverage [1] Financial Performance - Q3 revenue remained stable, while gross margin improved due to favorable raw material costs and a shift towards higher-end instant noodles [1] - The company aims for a full-year sales growth target of 6-8%, which is considered challenging by analysts [1] Valuation and Target Price - The target price has been reduced by 15% from HKD 9.9 to HKD 8.4, based on an updated 2026 price-to-earnings ratio of 14.5 times [1] - The downgrade in valuation multiples reflects the negative impact of ready-to-drink products on beverage sales, which is expected to persist until 2026 [1] Dividend and Investment Appeal - The current dividend yield of 6.5% is viewed as attractive [1] - Analysts suggest that if signs of stabilization in industry competition emerge, the rating may be upgraded to "Buy" [1]