Shares of Want Want China (00151) fell more than 3% in the late trading session.

At the time of writing, the stock was down 2.86% to HK$4.08, with a turnover of HK$17.7892 million.

Market Context and Performance

Recent analysis highlights that the company's share price has declined by 14% since March, underperforming both its industry peers and the Hang Seng Index over the same period.

This trend is attributed to market concerns that rising raw material costs could negatively impact the company's financial performance for the fiscal year ending March 2026.

Analyst Perspective on Cost Pressures

However, the view is that the actual impact of these increased raw material costs on the company is likely to be limited.

It is estimated that PET, a material whose price has risen due to petrochemical feedstock costs, constitutes only about 10% of the company's core raw material costs for fiscal 2026.

Meanwhile, the price of whole milk powder, which represents a larger proportion of costs, has decreased since the start of the year, partially offsetting the negative effect of the PET price increase.

Furthermore, prices for other key materials such as rice, palm oil, tinplate, and white sugar have remained stable.