WANT WANT CHINA (00151) shares plummeted 5.08% in intraday trading, as the snack and beverage maker's interim results fell short of market expectations and prompted analysts to express concerns about the company's profitability and growth strategy.

The sharp decline follows reports from multiple financial institutions highlighting WANT WANT CHINA's disappointing performance. CLSA lowered its target price for the company from HK$5.3 to HK$4.9, maintaining a "Hold" rating. The adjustment came after WANT WANT CHINA reported a 2% year-on-year increase in interim revenue, but an 8% decline in profit for the period ending September. CLSA analysts attributed the profit shortfall to lower gross margins and higher operating expense ratios.

UBS echoed these concerns, noting that while WANT WANT CHINA's revenue met expectations, profits fell short of market forecasts. The bank pointed to a 10.6% year-on-year increase in operating expenses, including higher advertising and promotional costs, as a key factor pressuring profitability. Additionally, UBS reported that the company's management acknowledged weaker sales performance in October and November compared to the previous year. Bank of America further compounded investor worries by expressing caution about the company's expansion into emerging and discount snack channels, suggesting it could weaken product pricing power and increase channel costs, potentially impacting long-term profitability.