Balanced Outlook on Vitasoy International: Growth Potential Amidst Competitive Pressures

DBS analyst Alison Fok maintained a Hold rating on Vitasoy International Holdings (VTSYF – Research Report) today and set a price target of HK$9.50.

Alison Fok’s rating is based on a combination of factors that reflect both the opportunities and challenges facing Vitasoy International Holdings. The company has shown significant growth potential, with a profit alert indicating a 94-111% year-over-year increase in FY25 earnings, aligning with expectations. This growth is largely driven by improvements in operating profit across core regions like China and Hong Kong, as well as a reduction in operating losses in Australia.
However, despite these positive developments, Alison maintains a conservative outlook due to the intense competitive landscape in China, which remains a critical market for Vitasoy, accounting for a significant portion of its sales. While there is an expectation of sales growth and improved profitability in core markets, the decision to hold the stock reflects caution given the competitive pressures and the company’s decision not to raise prices in the near term. The target price has been raised to HKD9.5, but the Hold rating suggests a balanced view of the company’s future prospects.