Elevator Pitch
I assign a Neutral rating to Hong Kong-listed Chinese food & beverage company Uni-President China Holdings Ltd (OTCPK:UPCHY) (OTCPK:UNPSF) [220:HK].
Uni-President China's Soup Daren high-end instant noodles and Kai Xiao Zao self-heating rice meal products were the star performers for the company in 1H 2020. Uni-President China's beverages segment revenue declined by -7% YoY in 1H 2020 largely due to Covid-19 headwinds, but sales of its flagship Uni Assam milk tea products remain resilient (+3% YoY sales growth) with future growth possibly coming from sugar-free tea products such as