- We downgrade our rating to MARKET PERFORM from OUTPERFORM following a 14% increase in QNS’s share price over the last two months. QNS’s 2023F P/E at target price of 8.0x looks full given (1) the moderate long-term outlook for the soy milk business and (2) sizeable profit contribution (42% in 2023F) from the volatile and capital-intensive sugar business.

- We raise our target price (TP) by 3% mainly due to our 12%/5% respective increases in our equity value projections for sugar/soy milk segments. Sugar/soymilk accounts for 23% and 48% of total equity value in our sum-of-the-parts valuation, respectively.

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