By Justina Lee


Tingyi (Cayman Islands) Holding Corp. shares slumped early Tuesday after its full-year net profit missed analysts' estimates.

Shares in Hong Kong fell as much as 14% to 12.22 Hong Kong dollars (US$1.56) and were recently 9.9% lower.

The food company's 2022 net profit fell 31% to 2.63 billion yuan (US$382.0 million), below the CNY2.67 billion estimate compiled by FactSet, weighed by higher distribution costs and a decline in gross margin.

Tingyi's group top-line guidance for 2023 was also much lower than peer Uni-President China Holdings Ltd.'s "to our and the market's disappointment," Citi analysts said in a note.

The analysts noted the company's management as saying that it needs to have a higher advertising-to-sales ratio in 2023 to recover market share lost to UPC.

Citi maintained a neutral rating and HK$11.76 target price on Tingyi's shares.


Write to Justina Lee at justina.lee@wsj.com


(END) Dow Jones Newswires

03-27-23 2235ET