Core Viewpoint - Morgan Stanley has raised the target price for Super盈 International Holdings (02111) by 11.8% from HKD 3.4 to HKD 3.8, maintaining an "Overweight" rating [1] Financial Projections - The earnings forecast for Super盈 for 2025-2027 has been adjusted downwards by 1-3%, with the valuation period extended to December 26 [1] - The new target price of HKD 3.8 is based on a discounted cash flow method, equivalent to 5 times the one-year forecasted P/E ratio [1] Sales and Profitability Expectations - Sales and profit are expected to grow by 3% and 11% respectively in the second half of 2025, improving from declines of 2% and 6% in the first half, due to easing tariff impacts [1] - Factors driving this improvement include: 1. Recovery in orders, particularly in sportswear, with a rebound observed in July-August [1] 2. Improved utilization rates, with fabric/webbing utilization at 75% in the first half of 2025, compared to 80-85% in 2024, leading to a 60 basis point increase in gross margin in the second half [1] 3. Limited impact of tariff allocation on profit margins in the first half, as most brands did not request adjustments for the second half [1] Capacity Expansion and Capital Expenditure - The anticipated recovery of production capacity in Vietnam, previously halted due to tariff uncertainties, is expected to contribute to increased overseas capacity, currently at approximately 40% [1] - Future capital expenditures are projected to reach HKD 500-1,000 million over the next two years [1]
小摩：上调超盈国际控股(02111)目标价至3.8港元 维持“增持”评级