Goldman Sachs issued a research report maintaining a "Buy" rating on TINGYI (00322), with a target price of HK$13.7 based on a forecasted price-to-earnings ratio of 15 times for 2027.

TINGYI reported annual sales of RMB 79.1 billion last year, with net profit increasing 21% year-on-year to RMB 4.5 billion, meeting the bank's expectations. In the second half of the year, sales reached RMB 39.0 billion, with instant noodle sales growth showing improvement compared to the first half. Adjusted net profit, excluding one-time gains from the sale of subsidiaries, properties, plants, and equipment, rose 14% year-on-year to RMB 4.25 billion.

The report noted that gross margin expanded by 1.7 percentage points to 34.8%, driven by favorable raw material costs, optimized beverage product mix, and higher average selling prices for instant noodles. Core operating profit increased approximately 10% year-on-year to RMB 6.41 billion, while the core operating profit margin widened by 0.9 percentage points, mainly due to improved gross margin, though partly offset by a 1.2 percentage point increase in the sales and administrative expense ratio.

By business segment, the beverages division reported an operating profit of RMB 1.51 billion in the second half, up 1% year-on-year and 12% higher than the bank's expectations, benefiting from a 1.9 percentage point expansion in gross margin to 37.3%. The instant noodles segment recorded an operating profit of RMB 1.67 billion in the second half, an increase of 8.5% year-on-year, with the operating profit margin widening by 0.6 percentage points to 11.2%. The full-year dividend payout ratio remained at 100%.