Want Want China's top 3 plans for sales boost

Will this be successful?

According to Maybank Kim Eng, WWC recorded a 32% YoY rise in NPAT to USD554m in FY12, in line with our and market estimates. However, top-line growth was disappointing as growth slowed from the high teens in 1H12 to high single digits in 2H12, which WWC said was attributable to the shift in the timing of the Chinese New Year festival and business optimisation efforts on top of weak macros. 

A 5ppt expansion in GPM beat expectations, but was marginally diluted by a rising OPEX ratio. A key positive is the higher dividend payout of 68% from 62% in prior year. 

Here's more from Maybank Kim Eng:

WWC focused on three key initiatives to enhance its sales network penetration throughout the year, namely: i) the “Brighten Up Reinforcement Programme” which targets to increase its shelf space recognition at its POS; ii) a distributor development programme, as it offers more assistance to its 5,000 exclusive distributors; and iii) business structure optimisation, as it splits the modern channel KA team into two teams to strengthen its current weak KA exposure.

It also deepened its coverage in second- and third-tier cities by refining its coverage. As of end-FY12, it had 600k POS.