U-PRESID CHINA (00220) surged over 4%, rising 4.39% to HK$9.76 with turnover of HK$71.29 million as of press time.

On the news front, U-PRESID CHINA recently released its interim results for 2025. Goldman Sachs noted that the company's first-half revenue and net profit increased 10.6% and 33.2% year-on-year respectively, exceeding Goldman's forecasts by 8.5% and 27.4%, and surpassing market expectations by 8.4% and 26.6%.

Additionally, despite rising palm oil prices, the food business maintained continuous improvement in capacity utilization rates, driving EBIT up 32% year-on-year, significantly outperforming Goldman's forecast by 45%. Due to intense market competition, the firm lowered its beverage sales and EBIT margin forecasts by 2.4% and 0.3 percentage points respectively, while raising instant noodle business EBIT margin forecasts by 0.8 to 0.9 percentage points to reflect improved sales momentum and strengthened product mix.

However, China Merchants Securities believes that with no price increase plans from the company and continued intensified promotional activities in core categories such as sugar-free tea, combined with the fact that raw material cost benefits have been largely released, growth and profit margin upside appears limited. The company delivered steady performance in the first half of 2025, and although management reiterated the full-year sales growth target of 6-8% while continuing to emphasize long-term brand investment over short-term price promotions, new uncertainties are emerging, particularly regarding the scale and duration of delivery platform subsidies, which have begun disrupting channel dynamics since April.