Zhitong Financial APP learned that BofA Securities released a research report that reaffirmed the "buy" rating of O'Shudan (00973). Due to its multi-brand strategy, it raised its earnings per share forecast for fiscal year 2022 by 2% and 14%, with the target price rising from HK $34 to HK $36, taking into account the contribution of the new brand.

The company's medium-term sales and net profit rose 13% and 298% year-on-year in the year to the end of September, while the operating profit margin lagged slightly behind the bank's expectations, due to Elemis's upfront investment in brand promotion costs for new entrants to the market, and Limelife operating deleveraging, the report said. Although the outbreak may bring more uncertainty, given its strong performance in the third quarter, the company slightly improved its sales growth guidance and operating profit margin in the second half of the year, and its newly acquired brand Sol de Janeiro could also become a new potential growth driver.