Zhi Tong Cai Jing·2026-01-12 02:41Core Viewpoint - Macquarie maintains an "outperform" rating for Master Kong (00322) and believes 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 operational cost control [1] - The company is expected to see healthy profit growth supported by these adjustments [1] Valuation and Target Price - Macquarie maintains a price-to-earnings ratio of 15 times for the 2026 forecast and has increased the target price from HKD 14.7 to HKD 15, representing a 2% increase [1] Dividend Yield - The anticipated dividend returns for Master Kong are attractive, with expected dividend yields of 7% and 8% for 2025 and 2026 respectively [1] Sales and Profit Expectations - Sales for the second half of 2025 are projected to increase by 0.1% year-on-year, with a 3% growth in the instant noodle segment offsetting a 1.5% decline in beverage sales [1] - Operating profit is expected to grow by 13.4% year-on-year, primarily benefiting from strict cost control strategies and favorable raw material price trends [1] Future Growth Potential - Following a price increase for instant noodle products in July 2024, the low base effect is expected to result in positive sales growth for instant noodles in the second half of 2025, which is likely to continue 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]