Nissin Foods (1475.HK, Buy) – Price hike in instant noodle products (+ve)

Nissin Foods (1475.HK, Buy) announced that the Group plans to increase ex-factory prices, effective starting 1st of March. 

  • The Group plans to increase its ex-factory prices in China by mid-single digit, relating to majority of their key products sold in China (Cup Noodles, Demae Iccho (bag, cup, bowl types), Nissin Pasta, Raoh etc. 
  • This is due to overall unstable raw material supply and increases in raw material prices, such as palm oil. 
  • This comes after UPC (220.HK) ex-factory price increase in varying degrees between mid-to-high single digits targeting premium instant food products in Nov’21. 
  • We believe the market have anticipated for the price increase at a similar magnitude to peers, and remain positive on improving margin trend ahead. 
  • Our last rating was a BUY, with TP at HK$6.80.