Goldman Sachs: Weilong Delicious (9985.HK) NDR Takeaways — New Flavors and Categories Underpin Sustained Growth; 2026 Channel Outlook; Buy
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Goldman Sachs hosted a group NDR with Weilong Delicious Global Holdings (9985.HK) on April 13, 2026. Management provided 2026 guidance targeting approximately 15% year-over-year sales growth, a net profit margin of 18%–20%, a gross margin of 46%–48%, and stable selling and administrative expense ratios.
On the product side, the konjac category remains a key growth driver, with spicy, sour-spicy, and sesame-paste flavors ranking as the top three SKUs. Management sees further penetration headroom and introduced new offerings including sesame-paste, porcini, and pounded chicken feet variants. For seasoned flour products, the company has been proactively streamlining SKUs since May 2025. Inventory digestion is expected to continue through 1H26, with improvement anticipated in 2H26 due to easier comparisons. Stinky tofu was launched in late March 2026 with four flavors, and management expressed optimism that it could become a third growth curve.
Across channels, online e-commerce is expected to extend its 2H25 recovery into 2026 following key adjustments in May 2025. Offline snack discount stores are projected to grow faster than the pace of store expansion, while traditional distribution remains the most profitable channel.
On costs, soybean oil and packaging present the greatest pressures, though konjac price volatility has been limited. Inventory management, automation, and supply-chain efficiency should help stabilize the 1H26 gross margin. The Nanning factory plans total investment of approximately RMB 1 billion, with 2026E capex of roughly RMB 700–800 million.
Goldman Sachs maintains a Buy rating with a 12-month target price of HKD 14.00, versus the current share price of HKD 9.34, implying 49.9% upside.