Goldman Sachs has raised its target price for U-PRESID CHINA (00220) from HK$8.2 to HK$8.8 while maintaining a "Neutral" rating. The company reported sales and net profit of RMB 31.7 billion and RMB 2.05 billion last year, representing year-on-year growth of 4.6% and 10.9%, respectively. Revenue was largely in line with the firm's projection of RMB 31.9 billion, though slightly below the market consensus estimate of RMB 32.2 billion. Net profit fell short of both the firm's and market expectations of RMB 2.122 billion and RMB 2.212 billion, mainly due to a one-time investment impairment. Excluding this impact, adjusted net profit rose 17.6% year-on-year to RMB 2.174 billion, surpassing the firm's forecast by approximately 2%.

Sales in the second half of last year were estimated to have declined 1.7% year-on-year to RMB 14.6 billion, meeting the firm's expectations. Adjusted net profit for the same period was RMB 888 million, flat compared to the previous year but about 6% higher than market expectations. Given U-PRESID CHINA's stronger-than-expected beverage business performance in the second half of last year and steady sales growth so far this year, coupled with its disciplined promotional strategy, Goldman Sachs has raised its beverage sales forecast for the company for 2025–2027 by 1% to 3%, offsetting an approximate 1% decline in noodle sales. The firm also increased its recurring net profit forecast by 7%, reflecting improved gross margin in the latter half of last year. However, it remains cautious about further margin expansion due to ongoing commercial investments amid rising bottle costs and persistent competitive pressures.