Goldman Sachs: Citing Kangshifu Holdings (00322.HK) next year focusing on improving profit margins, it is expected that future cost inflation will benefit its pricing strategy.

According to the Wisdom Finance APP, Goldman Sachs released a research report stating that it has given Master Kong Holdings (00322.HK) a "buy" rating with a target price of 12.7 Hong Kong dollars. Goldman Sachs held a non-deal roadshow with Master Kong's management on Monday (the 3rd) at the food and beverage enterprise day. Master Kong's profit target for the 2025 fiscal year (double-digit growth in recurring net profit year-on-year) is expected to be achieved, mainly due to pricing base effects, cost tailwinds, efficiency improvement measures, and strict promotion management. Looking ahead to 2026, Master Kong's management reiterated that the core focus will be on improving profit margins, with the potential to restore revenue growth trajectory and continue to drive efficiency improvement measures. The company usually locks in purchases of various raw materials for periods ranging from half a month to several months.