智通财经网·2025-11-26 06:37Core Viewpoint - Morningstar maintains a fair value estimate of HKD 6.4 for China Wangwang (00151) and keeps its earnings expectations largely unchanged, believing the company is undervalued primarily due to a projected dividend yield of 4.3% in 2025 [1] Financial Performance - For the half-year period ending September, Wangwang reported a revenue increase of 2.1% year-on-year, while net profit decreased by 7.8%, attributed to a decline in gross margin and increased operating expenses [1] - Revenue exceeded expectations, but net profit was in line with forecasts [1] Investment and Growth Strategy - The company is increasing investments in new channels, which has temporarily raised the sales expense ratio; however, this is viewed positively as essential for long-term growth [1] - Revenue from traditional wholesale and modern retail channels decreased by approximately 15-20%, indicating a shift in customer traffic from traditional products and channels [1] Emerging Channels and Market Expansion - Despite the decline in traditional channels, overall revenue growth remains positive, supported by new products in emerging channels [1] - Wangwang is optimistic about expanding sales in niche markets like dairy products through discount stores, which accounted for 15% of total sales during the period [1] - The overseas market also showed positive growth, which is viewed favorably [1]