WANT WANT CHINA (00151) fell more than 4% again, dropping 4.47% to HK$4.7 by the time of writing, with a turnover of HK$31.1169 million. UBS released a research report stating that WANT WANT CHINA's revenue for the first half of fiscal year 2026 (interim period ending September this year) grew 2.1% year-on-year to RMB 11.1 billion, while net profit declined 7.8% year-on-year to RMB 1.7 billion. Gross margin fell 1.1 percentage points year-on-year to 46.2%, and net profit margin dropped 1.7 percentage points to 15.5%. The bank noted that while revenue met expectations, profits fell short of market forecasts, primarily due to a 10.6% year-on-year increase in operating expenses, including higher advertising and promotional costs.

UBS pointed out that according to WANT WANT CHINA's management, sales performance in October and November this year was weaker compared to last year, mainly because the 2026 Lunar New Year falls later. Regarding margins, management expects gross margin in the second half to remain stable compared to the first half, with potential improvements next year as imported milk powder costs gradually decline from current highs.

Bank of America expressed concerns that while the company's expansion into emerging and discount snack channels may boost sales volume and market penetration, it could also weaken product pricing power and increase channel costs, putting pressure on long-term profitability. Additionally, the bank remains cautious about weak demand for dairy beverages and intensified subsidy competition on e-commerce platforms.