Morgan Stanley released a research report saying that it is believed that the stock price of Jiuxing Holdings (01836) will rise in the next 60 days. Damo's target price for Jiuxing is HK$12, and the investment rating is “increase in holdings”.
According to the report, it is still optimistic about Jiuxing's unique position to offset the difficult situation of its footwear OEM. Against this backdrop, orders from major sports brands have not recovered well. Jiuxing's entry into the luxury category helped it obtain good order support, capacity utilization, and continued profit margin expansion as a result.