Bank of America Securities released a research report saying that it reiterated the "buy" rating of Minhua Holdings (01999) and raised its target price from HK$6 to HK$10.
The report pointed out that the 2024 fiscal year results were in line with the bank's expectations, but better than market expectations. Since late April,Tiger'sRichesRoarAfter the introduction of a series of stimulus policies, investors currently expect that the real estate policy will be further relaxed, which will benefit from improved market sentiment, and its risk-return will be better than those of their furniture industry peers.
The bank said Minhua's net profit increased by 20% year-on-year to 2.3 billion yuan, and its net profit margin increased by 1%Tiger'sRichesRoar.5 percentage points to 12.5%, which is roughly in line with the bank's forecast. It expects operating income and profit to increase by 9% in fiscal year 2025.
