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.