Xi Niu Cai Jing·2025-12-01 02:45Core Insights - China Wangwang reported a revenue of 11.11 billion RMB for the six months ending September 30, 2025, representing a year-on-year growth of 2.1%. However, net profit decreased by 7.8% to 1.72 billion RMB [2][4]. Financial Performance - Revenue: 11,107,792 thousand RMB in 2025 compared to 10,876,637 thousand RMB in 2024, an increase of 2.1% [4] - Gross Profit: 5,131,748 thousand RMB, slightly down by 0.2% from 5,141,311 thousand RMB [4] - Operating Profit: 2,260,712 thousand RMB, a decline of 11.0% from 2,540,711 thousand RMB [4] - Profit Attributable to Equity Holders: 1,717,427 thousand RMB, down 7.8% from 1,863,371 thousand RMB [4] - Basic and Diluted Earnings per Share: 14.55 RMB, a decrease of 7.8% from 15.78 RMB [4] - Gross Margin: 46.2%, down 1.1 percentage points from 47.3% [4] - Operating Margin: 20.4%, down 3.0 percentage points from 23.4% [4] - Profit Margin: 15.5%, down 1.6 percentage points from 17.1% [4] Business Segments - The revenue composition includes four main segments: - Rice snacks (e.g., sugar-coated rice cakes, savory rice cakes, fried snacks) - Dairy and beverages (e.g., flavored milk, ambient yogurt, lactic acid drinks, ready-to-drink coffee, juice drinks, sports drinks, herbal tea, and milk powder) - Snack foods (e.g., candies, ice products, snacks, cakes, jellies, beans, nuts, and others) - Other products mainly consist of alcoholic beverages and other food items [4]. Segment Performance - The dairy and beverage segment was the only one to experience a revenue decline, generating 5.94 billion RMB compared to 6.01 billion RMB in the previous year [5]. - The overall revenue for China Wangwang has fluctuated between 20 billion RMB and 24 billion RMB in recent years [5]. Market Valuation - As of November 25, China Wangwang's total market capitalization was 55.59 billion HKD, significantly reduced from a previous valuation of 170 billion HKD [5]. Analyst Ratings - Following the mid-term performance announcement, several financial institutions, including JPMorgan, Bank of America, Credit Lyonnais, and UBS, downgraded their target prices for China Wangwang. Bank of America set a target price of 4.7 HKD, reiterating a "underperform" rating [6].