WANT WANT CHINA (00151) saw its stock price plummet 5.08% during intraday trading, as investors reacted to disappointing interim financial results and cautious analyst reports. The snack and beverage maker's shares tumbled despite reporting a 2% year-on-year increase in revenue for the period ending September, as profits fell short of market expectations.

According to a UBS research report, WANT WANT CHINA's net profit for the first half of fiscal year 2026 declined 7.8% year-on-year to RMB 1.7 billion, while gross margin fell 1.1 percentage points to 46.2%. The primary culprit for the profit squeeze was a 10.6% year-on-year increase in operating expenses, particularly in advertising and promotional costs. Additionally, the company's management indicated weaker sales performance in October and November compared to the previous year, partly due to the later timing of the 2026 Lunar New Year.

Adding to investor concerns, CLSA lowered its target price for WANT WANT CHINA from HK$5.3 to HK$4.9, maintaining a "Hold" rating. While CLSA expressed optimism about the company's new distribution channels and product development, it warned that allocating more resources to these areas in the short term, coupled with rising raw material and advertising costs, could pressure profit margins. Consequently, CLSA reduced its net profit forecasts for fiscal years 2026-2028 by 8% to 13%. Bank of America also raised concerns that the company's expansion into emerging and discount snack channels, while potentially boosting sales volume and market penetration, might weaken product pricing power and increase channel costs, putting further pressure on long-term profitability.