Analyst Note| Philip Gorham, CFA, FRM |
Want Want reported respectable results for year ending March 31, 2021 (fiscal 2020), beating our forecasts for revenue growth but falling short of Pitchbook consensus estimates. The gross margin was 40 basis points above our forecasts and 20 above consensus--this led to similar upside at the EBIT margin. EPS of CNY 0.34 was in line with our and consensus forecasts. We lower our estimates of revenue growth and gross margin in fiscal 2021, primarily due to raw material cost inflation and the modest beat in fiscal 2020.