Phoenix New Media Hong Kong stock | Daiwa reported that manufacturing revenue of Jiuxing Holdings in the fourth quarter of 2021 was 15 per cent higher than the bank's expectations (18 per cent higher than market expectations). The bank noted that the better-than-expected main reason was the one-off inclusion of freight costs in the average selling price calculation. After adjustment, the company's revenue for the period was still slightly better than the bank's expectations, while sales were 4% higher than the bank's expectations.
The company's management remains confident about its order performance in 2022 and continues to improve its net profit margin guidance. Daiwa continued to index, among the exporters covered, the bank believes that the company performed best in 2021, and Daiwa is still the preferred share in small-cap stocks because of its ever-improving dividend yield prospects.
Daiwa reiterated its buy rating by raising its core earnings per share forecast for the 2021-23 fiscal year by 2-3 per cent and raising its target price from HK $12.50 to HK $12.70.