Core Viewpoint - The company reported strong performance in H1 2025, with revenue of 17.09 billion yuan, a year-on-year increase of 10.6%, and a net profit of 1.29 billion yuan, up 33.2% [1][2] Group 1: Revenue and Profit Performance - The company's revenue remained resilient, with beverage business revenue increasing by 7.6% year-on-year, food business revenue up by 8.8%, and other business revenue soaring by 91.8% due to strong growth in alliance OEM business [1] - The gross profit margin for H1 2025 increased by 0.5 percentage points, benefiting from declining raw material prices and improved capacity utilization [2] - The net profit margin rose by 1.3 percentage points to 7.5%, with beverage and food business net profit margins increasing by 2.1 and 0.6 percentage points, respectively [2] Group 2: Business Segment Performance - Beverage business achieved revenue of 10.79 billion yuan in H1 2025, with significant contributions from ready-to-drink tea, juice, and milk tea, showing growth rates of 9.1%, 1.7%, and 3.5% respectively [1] - Food business revenue reached 5.38 billion yuan, with double-digit growth in certain product lines and an increase in the proportion of products priced above 5 yuan [1] - Other business revenue was 0.92 billion yuan, reflecting a remarkable growth of 91.8%, driven by deepening collaborations with major clients [1] Group 3: Cost Management and Efficiency - The company improved its gross profit margin in the beverage segment to 39.4%, aided by stable or declining raw material prices and enhanced capacity utilization [2] - The sales and management expense ratios decreased, indicating effective cost management strategies and a focus on improving cost efficiency [2] - The company is expected to maintain a stable profit margin in 2025, with manageable fluctuations in overall costs [2] Group 4: Future Outlook and Valuation - The company is projected to maintain steady operations in H2 2025, with ongoing product innovation expected to contribute to revenue growth [2] - Earnings per share (EPS) forecasts for 2025-2027 have been raised, reflecting a positive outlook for profitability [2] - The target price for the company's stock is set at 11.80 HKD, based on a price-to-earnings ratio of 20x for 2025 [2]

Core Viewpoint - The performance of Uni-President China shows significant growth in both revenue and profit, driven by beverage and food business segments, alongside a notable increase in other business revenues from contract manufacturing [1][2][4]. Financial Performance - In the first half of the year, Uni-President China reported revenue of 17.09 billion yuan, a year-on-year increase of 10.6%, and a net profit attributable to shareholders of 1.29 billion yuan, up 33.2% [1]. - Beverage business revenue grew by 7.6% to 10.79 billion yuan, with specific segments like ready-to-drink tea, juice, and milk tea showing revenues of 5.07 billion, 1.82 billion, and 3.40 billion yuan respectively, reflecting growth rates of 9.1%, 1.7%, and 3.5% [1]. - The food business revenue reached 5.38 billion yuan, marking an 8.8% increase, with notable growth in products like "Qie Huang" and "Soup Master" [1]. Profitability Metrics - The company's gross margin improved by 0.5 percentage points to 34.3%, with the beverage segment's gross margin rising by 1.4 percentage points to 39.4% due to stable raw material prices and increased capacity utilization [2]. - The food segment's gross margin decreased by 0.4 percentage points to 26.8%, impacted by rising palm oil prices, although improvements in capacity utilization were noted [2]. Cost Management - Sales and management expense ratios decreased by 1.2 and 0.2 percentage points to 22.1% and 3.3% respectively, indicating effective cost management [3]. Market Performance - On August 7, Uni-President China's stock closed at 9.62 HKD per share, reflecting a 4.00% increase, while the Shanghai Consumer 80 Index fell by 0.65% on the same day [5][6].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of HKD 11.80 [1][8] Core Views - The company reported a strong performance in H1 2025, achieving revenue of RMB 17.09 billion, a year-on-year increase of 10.6%, and a net profit of RMB 1.29 billion, up 33.2% year-on-year [5][6] - The beverage segment showed resilience with a revenue growth of 7.6%, while the food segment grew by 8.8%. The other business segment saw a remarkable increase of 91.8%, primarily due to the growth in alliance OEM business [5][6] - The company is expected to maintain revenue resilience, with ongoing product innovation contributing to revenue growth, despite increased competition in the takeaway market [5][8] Financial Performance Summary - For H1 2025, the company achieved a gross margin of 34.3%, an increase of 0.5 percentage points year-on-year, benefiting from lower raw material prices and improved capacity utilization [7] - The net profit margin for H1 2025 increased by 1.3 percentage points to 7.5%, with beverage and food business net profit margins at 14.6% and 3.5%, respectively [7] - The company expects to maintain a dividend payout ratio of 100% over the next 2-3 years [5][8] Earnings Forecast and Valuation - The earnings per share (EPS) forecast for 2025 is RMB 0.54, with projected revenues of RMB 32.88 billion and net profit of RMB 2.33 billion [4][15] - The company is valued at a price-to-earnings (PE) ratio of 20x for 2025, leading to a target price of HKD 11.80, reflecting an increase from the previous target of HKD 11.17 [8][15]