Core Viewpoint - Oriental Selection (01797) has seen a significant decline in stock price, dropping over 40% from its August peak, with a current price of 23.66 HKD and a trading volume of 580 million HKD [1] Group 1: Financial Performance and Forecasts - Citigroup has revised its revenue forecasts for Oriental Selection for the fiscal years 2025 to 2027, lowering them by 36%, 31%, and 30% respectively, and profit forecasts by 69%, 30%, and 26% [1] - The target price for Oriental Selection has been raised from 18.5 HKD to 33 HKD, with expectations of 264,000 paid members and a monthly repurchase rate of 40% [1] - The gross margin for proprietary brands is expected to recover from a low of 10% to 24%, with adjusted net profit margins projected to reach 7% to 8% by 2028, up from the current 4% [1] Group 2: Market Reactions and Analyst Ratings - Goldman Sachs noted mixed performance for Oriental Selection's second half of the fiscal year ending May, with a 55% year-on-year decline in gross merchandise volume (GMV) to 3.9 billion RMB, which was 15% lower than their expectations [1] - Despite controlling operating expenses leading to better-than-expected earnings per share, Goldman Sachs maintains a "sell" rating due to ongoing weak fundamentals and high valuations [1]
港股异动 | 东方甄选(01797)跌近6% 较8月高点已回撤逾四成 花旗称其转型成效仍待验证