UBS has revised its earnings per share forecast for U-PRESID CHINA (00220) downward by 1-3% for 2025-2027 and lowered its target price from HK$11.5 to HK$10.5, while maintaining a "Buy" rating. The company reported a 23% year-on-year increase in net profit for the first three quarters, with Q3 net profit rising 8% to RMB 726 million, in line with both UBS and market expectations.

Management reaffirmed its revenue growth target of 6-8% for this year and expects continued profit improvement from Q4 2025 onward. To address intensifying competition in the beverage sector, the company plans to maintain stable pricing while focusing on expanding high-performing sales channels.

UBS noted that while U-PRESID CHINA's performance and management outlook were largely as expected, recent weakness in the beverage segment has introduced greater pressure and uncertainty.