Jinwu Financial News | According to BOC International Development Research Report, H&H International Holdings (01112)'s 2023 sales were in line with expectations, and net profit fell short of expectations. Also, the cash balance is lower than expected, which may attract investors' attention. The bank said sales growth in 2023 was in line with expectations, driven by strong growth in nutritional supplements, but was offset by continued weakness in infant formula.
The bank continued that the main reason for the company's relatively strong stock price performance was that sales of nutritional supplements were strong in the first nine months of 2023, but the initial performance for the whole year lacked quantifiable data, so it was impossible to assess the growth trend in the fourth quarter, and the company's previous guidelines meant that growth in the fourth quarter would normalize. The decline in cash balances is also the focus of investors' attention. Maintaining a neutral rating, the target price is HK$10.4.