Core Viewpoint - CITIC Securities raised the target price for Minhua Holdings (01999) by 11% from HKD 4.5 to HKD 5, maintaining an "outperform" rating despite weak domestic demand, citing stable underlying profits due to margin improvements [1] Group 1: Financial Performance - Minhua achieved stable underlying profits in FY2025, attributed to margin enhancements [1] - The net profit estimates for 2026 and 2027 were reduced by 7.1% and 7.5% respectively, reflecting lower sales assumptions and tariffs [1] Group 2: Market Position and Strategy - Minhua's global production base has shown resilience in overseas sales, helping to mitigate the impact of US tariffs [1] - Continuous efficiency optimization and increased overseas capacity are expected to stabilize short-term profitability [1] Group 3: Future Outlook - The company is anticipated to benefit from a potential stabilization in domestic demand by 2026 [1] - CITIC Securities rolled forward the valuation to 2027, applying a higher price-to-earnings ratio of 8.8 times, up from 7.5 times, which is still below the three-year average by 0.5 standard deviations [1]
中信里昂：维持敏华控股(01999)“跑赢大市”评级 目标价升至5港元