Short- term pains
- UPC 1H22 net earnings declined 27.5% on COVID lockdown impacts and higher material cost trends
- We believe gross profit margin should have largely bottomed out in 1H22, with easing material cost trends, with costs of packaging and palm oil becoming more favourable
- We trim our earnings by 13%-18% in FY22E/23E and introduce FY24E forecasts. Retain BUY with TP at HK$8.6
