Uni-President China (0220.HK): 3Q26 Review: In-line NP with softer beverage trends; Looking for margin resilience into 2027

UPC reported 3Q26 net profit up 0.5% yoy to Rmb730mn, as improving food momentum and continued opex discipline largely offset beverage topline and margin weakness plus higher raw-material costs. 9M26 group revenue grew low single digit yoy, with 3Q noodle sales up mid single digit on premiumization and beverages down mid single digit, a narrower decline than in 2Q led by resilient milk tea, while OEM grew high single digit. Management noted 9M26 gross margin expansion narrowed versus 1H26, with 3Q26 gross margin contracting slightly on more pronounced PET cost pressure, partly mitigated by promotion cuts, sugar cost tailwinds, mix upgrades and opex savings. Into 2027, management expects positive sales growth across noodles and beverages and group-level profit growth, while budgeting cost inflation pressure of about 0.5 to 1.0ppt on gross margin, weighted toward 1H27, and believes promotion reductions and expense discipline can support margin resilience. We lower 2026E-28E sales forecas