Core Insights - Goldman Sachs reported that Dongfang Zhenxuan's performance for the second half of the fiscal year ending May 2023 was mixed, with Gross Merchandise Volume (GMV) declining by 55% year-on-year to 3.9 billion, which was 15% lower than the bank's expectations [1] - Despite the decline in GMV, the company managed to control operating expenses, resulting in earnings per share exceeding expectations during the period [1] - Excluding a one-time impact from the sale to Huizhong, the net profit from continuing operations for fiscal year 2025 is projected to grow by 30% to 135 million [1] Financial Projections - Goldman Sachs has lowered its GMV forecast for Dongfang Zhenxuan for fiscal years 2026 to 2027 by 1% to 3%, while increasing revenue forecasts by up to 10% due to the improved contribution from self-operated brand products [1] - Adjusted net profit margin forecasts for fiscal years 2026 to 2027 have been raised by 0.2 and 1 percentage points, respectively [1] Rating and Target Price - Despite the adjustments, Goldman Sachs maintains a "Sell" rating on Dongfang Zhenxuan due to ongoing weak fundamentals and high valuations [1] - The target price has been raised from 8 HKD to 9 HKD [1]
大行评级｜高盛：东方甄选下半财年业绩好坏参半 目标价上调至9港元