Core Viewpoint - The company's Q3 2025 performance met market expectations, with a net profit of 726 million yuan, reflecting an 8.4% year-on-year increase [1]. Revenue Trends - Q3 revenue remained flat year-on-year, with food business showing mid-single-digit growth while beverage business faced slight declines due to intensified competition in a saturated market [1]. - Within product categories, Assam milk tea remained stable, while juice and Hai Zhi Yan faced slight pressure; however, Double Brew and Huan Shen experienced double-digit growth [1]. - The company is proactively managing inventory and enhancing product freshness by investing in manpower and freezer resources to expand into high-output locations such as sports venues and transportation hubs [1]. - New products launched in Q3 included 100% NFC blueberry juice and lemon ginger apple, enriching the product portfolio [1]. - The contract manufacturing business is estimated to achieve triple-digit year-on-year growth in Q3 [1]. Profitability and Cost Management - Q3 gross margin continued to improve, with a slight year-on-year increase attributed to lower raw material prices and improved capacity utilization [2]. - The beverage and noodle gross margins improved in Q3, with beverages benefiting more from declining raw material prices, although the improvement was somewhat limited by rising prices of certain materials and competition [2]. - The company’s expense ratio decreased year-on-year due to optimized spending and a focus on brand building [2]. Future Growth Outlook - The company maintains a stable strategy, expecting revenue growth to continue next year despite an anticipated increase in beverage decline due to external factors [2]. - With healthy inventory levels and a stable pricing strategy, the company aims to explore high-potential outlets to drive incremental growth for the coming year [2]. - Profit margins are expected to maintain an upward trend in Q4 and next year, supported by favorable cost conditions and a rational competitive strategy [2]. Earnings Forecast and Valuation - The earnings forecasts for 2025 and 2026 have been revised down by 3% and 6% to 2.23 billion yuan and 2.47 billion yuan, respectively, due to increased competition [2]. - The current trading multiples are 16x and 14x for 2025 and 2026 P/E, with a target price of 11.5 HKD, implying a 28.5% upside potential based on 20x and 18x P/E for 2025 and 2026 [2].

Core Viewpoint - CICC maintains a "outperform" rating for Uni-President China (00220), while lowering the profit forecast for 2025 and 2026 by 3% and 6% to 2.23 billion and 2.47 billion yuan respectively, with a target price of 11.5 HKD, indicating a potential upside of 28.5% based on 20/18 times P/E for 2025/2026 [1] Group 1: Financial Performance - In Q3 2025, the company's net profit reached 726 million yuan, representing an 8.4% year-on-year increase, aligning with market expectations [1] - The estimated Q3 revenue remained flat year-on-year, with food business showing moderate growth while beverage business faced slight declines due to intensified competition in the market [2] - The gross margin for the first nine months of 2025 showed a slight improvement year-on-year, attributed to lower raw material prices and increased capacity utilization [3] Group 2: Business Strategy and Market Conditions - The beverage segment experienced a decline in October compared to Q3, primarily due to external factors such as delivery subsidies and industry destocking, but the company maintains a stable pricing strategy and aims to explore high-potential outlets for future growth [4] - The company introduced new products in Q3, including 100% NFC blueberry juice and lemon ginger apple juice, to enhance its product portfolio [2] - The company is focusing on optimizing expense inputs and brand building, leading to a decrease in expense ratio year-on-year [3]

Core Viewpoint - CICC maintains a "outperform industry" rating for Unified Enterprises China (00220), adjusting profit forecasts for 2025 and 2026 down by 3% and 6% to 2.23 billion and 2.47 billion respectively, with a target price of HKD 11.5, indicating a potential upside of 28.5% [1] Group 1: Financial Performance - In Q3 2025, the company's net profit reached 726 million, representing an 8.4% year-on-year increase, aligning with market expectations [1] - Q3 revenue is estimated to be flat year-on-year, with food business showing moderate growth while beverage business faced slight declines due to intensified competition in the market [1] - The company launched new products in Q3, including 100% NFC blueberry juice and lemon ginger apple, to enhance its product portfolio [1] Group 2: Margin and Cost Management - The gross margin for the first nine months of 2025 is estimated to have improved slightly year-on-year, driven by lower raw material prices and increased capacity utilization [2] - The company’s Q3 expenses are expected to decrease year-on-year due to optimized spending and a focus on brand building [2] Group 3: Strategic Outlook - The company is expected to maintain a stable pricing strategy and healthy inventory levels, which will support revenue growth in the coming year despite a wider decline in beverage sales in October [3] - The company aims to explore high-potential outlets to drive incremental growth, with profit margins expected to continue improving in Q4 and the following year [3]