Broker: China Galaxy International Securities (CGSI)

Date of Report: December 4, 2025

Excerpt from China Galaxy International Securities report.

Report Summary

• Want Want China’s 1HFY3/26 results were below expectations, with sales up 2.1% year-on-year and net profit down 7.8%, mainly due to weak dairy sales and higher operating expenses from increased advertising and promotional spending.
• The company’s sales growth was supported by strong performance in new channels such as specialty snack stores and emerging channels, but overall margins remain under pressure due to higher costs and continued investment in sales growth rather than profitability.
• Management is focusing on expanding into overseas markets (Asia, Oceania, India, Africa) and expects margin improvement in FY27F as raw material costs stabilize and operating efficiency increases.
• CGSI lowered its FY26-28F earnings forecasts and target price, but maintains an “Add” rating on Want Want China, seeing potential catalysts in stronger sales from new channels and markets.
• Key risks include higher raw material prices, greater marketing spend, and weak macroeconomic conditions impacting consumption.

Above is an excerpt from a report by China Galaxy International Securities (CGSI). Clients of China Galaxy International Securities can be the first to access the full report from the China Galaxy International Securities website: https://www.chinastock.com.hk