Macquarie released a research report maintaining its "Outperform" rating on TINGYI (00322), expressing confidence that the new management team will focus on stringent cost management and revenue recovery to steer the company toward sustainable growth starting from 2026. Bolstered by confidence in rigorous operational expense control, Macquarie has raised its profit forecasts for TINGYI for 2025, 2026, and 2027 by 2.1%, 2.1%, and 2.0%, respectively. The firm noted that this will underpin the company's healthy profit growth trajectory. Regarding valuation, Macquarie maintained a 15x price-to-earnings ratio based on 2026 forecasts and increased the target price from HK$14.7 to HK$15, representing a 2% uplift. Concurrently, the report highlighted TINGYI's attractive expected dividend yield, projected to reach 7% in 2025 and 8% in 2026. Macquarie anticipates TINGYI's sales in the second half of 2025 will see a slight year-on-year increase of 0.1%, driven by a 3% growth in its instant noodle business, which successfully offset a 1.5% sales decline in the beverage segment. Furthermore, operating profit is forecast to grow 13.4% year-on-year, primarily benefiting from a strict cost-control strategy and favorable trends in raw material prices. The report suggests that, following the low-base effect from the July 2024 instant noodle price increase, sales growth in the instant noodle segment has turned positive in the second half of 2025 and is expected to persist through year-end. Simultaneously, gross margin for the second half of 2025 is projected to expand by 0.7 percentage points year-on-year, aided by declining raw material costs.