Zhi Tong Cai Jing·2026-01-12 02:27Core Viewpoint - Macquarie maintains an "Outperform" rating for Master Kong (00322), believing that the new management will focus on strict cost management and revenue recovery, leading the company to achieve sustainable growth starting in 2026 [1] Financial Projections - Macquarie has raised its earnings forecasts for Master Kong for 2025, 2026, and 2027 by 2.1%, 2.1%, and 2.0% respectively, based on confidence in strict operating expense control [1] - The target price for Master Kong has been increased from HKD 14.7 to HKD 15, reflecting a 2% upward adjustment, while maintaining a 15x price-to-earnings ratio for 2026 [1] Dividend Expectations - The expected dividend returns for Master Kong are attractive, with dividend yields projected at 7% for 2025 and 8% for 2026 [1] Sales and Profit Outlook - Sales for the second half of 2025 are expected to see a slight year-on-year increase of 0.1%, driven by a 3% growth in instant noodle business, which offsets a 1.5% decline in beverage sales [1] - Operating profit is anticipated to grow by 13.4% year-on-year, primarily benefiting from strict cost control strategies and favorable raw material price trends [1] Market Dynamics - Following the price increase of instant noodle products in July 2024, the low base effect is expected to manifest, leading to positive sales growth for instant noodles in the second half of 2025, with expectations of continuation until the end of the year [1] - Due to declining raw material prices, the gross margin for the second half of 2025 is expected to expand by 0.7 percentage points year-on-year [1]