Quanfeng Holdings (02285) fell nearly 7% at the end of the session. As of press release, it fell 6.84% to HK$18.52, with a turnover of HK$10.628,500.
The Zhitong Finance App learned that Quanfeng Holdings (02285) fell by nearly 7% at the end of the session. As of press release, it had a decrease of 6.84% to HK$18.52, with a turnover of HK$10.685 million.
According to the Morgan Stanley Research Report, Quanfeng Holdings' sales are expected to increase 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 HK$46.5 to HK$22.5. Due to uncertainty in the DIY business, it downgraded the rating from “increasing holdings” to “synchronizing with the market”.
Yamato, on the other hand, said that it is confident that the Group will recover a CAGR of about 15% in revenue from 2023 to 2026, but believes that promoting channel expansion and product innovation under fierce competition will result in a higher operating expenditure ratio, thus weakening profit recovery. The bank believes that after drawing on the experience of 2023, the group will focus on channel expansion and product diversification from 2024 to 2025, which will be transformed into continuous investment in operating expenses in the future. As a result, it is believed that profit recovery may take longer than expected by the market.