Investment Summary 

After revenue falling for the third consecutive fiscal year from 2014, FY2018 resumed growth. We believe that this reflected the growth of the overall market demand, as well as the company`s own efforts in new products and reforming of sales and distribution channels. We expect the top line growth will accelerate further this financial year, taking into account of the increase in ASP, launching new products, as well as non-traditional channels`expansion. The company raised ASP by medium-to-high single digit since April to May. It expects that the impact of the fare increase on sales volume is short-term, and the actual sales performance in July-August is in line with expectations. It plans to invest the gain from price increase into channels and branding. The sales of regular-size rice cakes has not been affected by the price hike too much, while the larger size one has been affected. Tetrapak “Hot-Kid milk” has not been affected too much, while the aluminum-can one has been affected.