CICC (China International Capital Corporation): Maintains "Outperform" rating on Uni-President China (00220.HK) and raises target price to 10.5 Hong Kong dollars.

According to the Wise Finance APP, CICC released a research report stating that China Resources Enterprise (00220.HK) announced its operating conditions for 1Q25, with overall revenue growth in the low double digits and net profit of 6.02 billion yuan, a year-on-year increase of +32%, exceeding market expectations. The main reasons were the increase in beverage gross margin and better-than-expected fee reduction. The company's current trading is at 16/14 times 2025/2026 P/E. Considering that the profit margin improvement exceeded expectations, the profit forecast for 2025/2026 was raised by 3.1%/3.2% to 22.2/25.4 billion yuan, and the target price was raised by 7% to 10.5 Hong Kong dollars, corresponding to 19/17 times 2025/2026 P/E and a 17% upward potential. The outperform industry rating is maintained.