Zhitong Financial APP learned that Lyon released a research report reiterating the "buy" rating of Oshudan (00973) and forecasting strong momentum in the third quarter, coupled with the reduction in the impact of Sol de Janeiro (SDJ) integration and one-off subsidies in the second half of the fiscal year, raising the target price from HK $36.60 to HK $38.8.

According to the report, the company's sales in the first half of the fiscal year rose 13% year-on-year and 19% at a fixed exchange rate, while operating profit margin reached 11.3%, which was lower than expected, mainly due to higher-than-expected Elemis marketing expenses and an one-off epidemic subsidy in fiscal year 2021. Lyon quoted management as predicting that the outbreak would have a limited impact on the retail market, improved operating guidance for the full fiscal year, expected year-on-year to double-digit sales growth and operating profit margins of more than 16 per cent.