Jin Wu Financial News | According to the Morgan Stanley Research Report, the sales volume of Liu Quanfeng Holdings (02285) increased 13% year-on-year this year, but the total sales volume is still below the 2022 level. Profit margins are recovering, but operating leverage has yet to return to its peak cycle. According to the bank, the prospects for the DIY market are still uncertain, and OEM customers may be more cautious when placing orders.
The bank lowered the company's target price from 46.5 yuan to 22.5 yuan. Due to uncertainty in the DIY business, it downgraded the rating from “increasing holdings” to “synchronizing with the market”.