Macquarie has revised its research report, lowering the net profit forecasts for VITASOY INT'L (00345) for fiscal years 2026 and 2027 by 16.3% and 13.3%, respectively. The target price was reduced from HK$10 to HK$7.4, while maintaining an "Outperform" rating.

In the third quarter, VITASOY INT'L's revenue in the Chinese mainland market fell 9% year-on-year, with plant-based milk products declining 10% and tea products growing 5%. The growth rate slowed compared to the double-digit growth seen in the same period last year. Revenue in the Hong Kong market dropped 4%, attributed to weak performance in the Vita Land business, Macau, and exports to the U.S., offsetting stable performance in Hong Kong.

Despite a highly promotional market environment, management noted a slight improvement in the Chinese mainland market performance compared to the first half of the fiscal year. In addition to sustaining growth in Hong Kong, the company plans to accelerate expansion into emerging channels such as online platforms and snack retail chains.