WANT WANT CHINA(HK:00151) Zhi Tong Cai Jing·2025-11-25 07:27Core Viewpoint - The report from Jefferies indicates a 4% reduction in the target price for Want Want China (00151) from HKD 5.71 to HKD 5.48, maintaining a "Neutral" rating. The earnings forecasts for fiscal years 2026, 2027, and 2028 have been lowered by 9%, 5%, and 1% respectively due to anticipated increases in sales and administrative expense ratios in the second half of fiscal 2026 [1][2]. Group 1 - The sales, general, and administrative expense ratio for the half-year period ending September increased by 2.2 percentage points to 28.8%, with the distribution expense ratio rising by 1.4 percentage points due to increased advertising and promotional investments, including cross-industry and co-branding projects [1]. - The administrative expense ratio increased by 0.9 percentage points, attributed to organizational restructuring that led to higher employee costs [1]. - The company has decided not to distribute an interim dividend to maintain operational flexibility [1]. Group 2 - For the outlook of the second half of fiscal 2026, management indicated that progress in October and November (third quarter) is slightly lagging compared to the same period last year, particularly due to the shift of gift box products to the February Spring Festival period [2]. - Strong growth is expected in emerging channels and snack specialty stores in the second half, while traditional and modern channels may continue to face pressure [2]. - The company aims to drive growth in rice snacks and snack products in the second half while striving to catch up in the dairy and beverage sectors [2].