Citigroup: Raises target price of Unified Enterprises China (00220.HK) to 11.9 Hong Kong dollars, maintains "buy" rating.

According to the Zhtng Cijng app, Citibank released a research report stating that after holding an investor conference in Nanning last week, the management of Uni-President China (00220.HK) has become more optimistic about its revenue growth and profit margin prospects for 2025 to 2027. Based on the upward adjustment of the revenue forecast by 1% and the downward adjustment of the sales expense ratio forecast, the bank's net profit forecasts for 2025 to 2027 have been revised up by 4%, 4%, and 8% respectively. Using a discounted cash flow (DCF) valuation model with a weighted average cost of capital of 10.2% and a perpetual growth rate of 4%, the target price has been raised from 10.22 Hong Kong dollars to 11.9 Hong Kong dollars. The "buy" rating is maintained.