China Merchants Securities International: Lowering the target price of Dongpeng Drinks (09980) by 22.3% to HK$101 to downgrade the rating to “neutral”

The Zhitong Finance App learned that China Merchants Securities International released a research report stating that the target price of Dongpeng Drink (09980) will be lowered by 22.3% from HK$130 to HK$101, and the rating will be downgraded from “increase in holdings” to “neutral.” The bank lowered the company's 2026 and 2027 profit forecasts by 12%, and the revenue forecast was lowered by an average of about 14%. The adjusted forecast was basically in line with market expectations.

The bank pointed out that adverse weather factors and exchange losses related to hedging dragged down Dongpeng Beverage's third quarter results. The company's net profit for the third quarter was 1.28 billion yuan, down 7.8% year on year. Performance was lower than expected, and core energy drink revenue fell 9%. China Merchants Securities International believes that the market has absorbed the company's 2027 recovery expectations ahead of schedule, so it downgraded its investment rating.