FULLY VALUED (Downgrade from Buy)
Last Traded Price (23 Jun 2021): HK$5.69 (HSI : 28,817)
Price Target 12-mth: HK$4.90 (14% downside) (Prev HK$7.20)
Alison FOK +852 36684170 alisonfok@dbs.com
Mavis HUI +852 36684188 mavis_hui@dbs.com
Alice HUI CFA +852 36684182 alicehuism@dbs.com

Investment Thesis
Growth impacted by intensifying competition and changing consumption trends; earnings projection below consensus: To-date, the traditional channel, accounting for >80% of sales, remains a key pillar for the Group. Other channels including e-commerce, account for high-single digit of sales, which is low versus competitors.
Currently, 30% of online food sales comes from snack foods according to Ministry of Commerce. We expect the Group to continue to experience softer growth relative to peers in the medium term. Our earnings projection are 4%/5% below consensus in FY22/23F.