Goldman Sachs issued a research report maintaining a "Buy" rating on TINGYI (00322) with a target price of HK$12.7. During a non-deal roadshow with TINGYI's management at the Food & Beverage Corporate Day on Monday (3rd), the bank noted that the company's FY2025 profit target (double-digit year-on-year growth in recurring net profit) is achievable, driven by pricing base effects, cost tailwinds, efficiency measures, and disciplined promotional management.

For 2026, TINGYI's management reiterated that margin improvement will be the core focus, alongside restoring revenue growth and continuing efficiency initiatives. The company typically locks in raw material procurement for half a month to several months.

Goldman Sachs highlighted that TINGYI's instant noodle segment returned to positive growth in Q3 2025 (starting July), with the trend expected to persist. Carbonated beverages also maintained growth in Q3. On the cost front, favorable trends remain—beverage margins and overall profitability benefited from cost advantages.

For instant noodles, palm oil costs rose 10% YoY in Q3 but stabilized in October, easing compared to H1. Combined with price hikes implemented since 2024, this is expected to support margin expansion in 2025 and H2.

Regarding beverage pricing, TINGYI's management noted limited large-scale promotions during peak seasons (despite some channel investments due to competition). However, if 2026 sales remain weak, the company may reassess pricing for larger SKUs (already raised since April last year). TINGYI believes future cost inflation in beverages and noodles could further support pricing strategies, given sustained post-2024 price adjustments.