Financial Performance: WANT WANT CHINA reported a 2.1% year-on-year increase in revenue but a 7.8% decrease in net profit for the first half of the fiscal year, falling short of HSBC Global Research's expectations due to higher operating expenses.
Operational Changes: The company reorganized its product departments starting FY2025, resulting in increased administrative expenses and higher advertising costs linked to new product launches.
Forecast Adjustments: HSBC Global Research revised its revenue forecasts for WANT WANT CHINA down by 1.9% to 2.2% for FY2025-2027 and increased its sales and administrative expense ratio forecasts.
Target Price Revision: The broker lowered its target price for the stock from $5.7 to $5.2 while maintaining a "Hold" rating, citing the company's dividend yield as below industry standards.
Wall Street analysts forecast 00151 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00151 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 00151 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00151 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 4.680
Low
Averages
High
Current: 4.680
Low
Averages
High
HSBC Global Research
HSBC Global Research
Hold
downgrade
Al Analysis
2025-11-26
Reason
HSBC Global Research
HSBC Global Research
Price Target
Al Analysis
2025-11-26
downgrade
Hold
Reason
The analyst rating for WANT WANT CHINA was kept at "Hold" due to several factors. The company reported a 2.1% year-over-year increase in revenue and a 7.8% year-over-year decrease in net profit for the first half of the fiscal year, both of which were below HSBC Global Research's expectations. This underperformance was attributed to significantly higher-than-expected operating expenses, including increased administrative costs from a reorganization of product departments and higher advertising expenses related to new product launches. Consequently, HSBC lowered its revenue forecasts for FY2025-2027 and increased its sales and administrative expense ratio forecasts, leading to a reduction in net profit forecasts. The target price was cut from $5.7 to $5.2, and the rating was maintained at "Hold" because the company's dividend yield was below the industry level.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
