Macquarie issued a report that 0973.HK believes it is expected to achieve a structural improvement in gross profit margins with its expanding product portfolio and flexible channel strategy. The bank reiterated Oshudan's "outperform" rating and raised its target price to HK $38 from HK $33.1.

Macquarie believes that due to Oshudan's robust marketing activities, new product launches and generally strong sales in the second half of the fiscal year, he is optimistic about the company's goal of a full-year gross profit margin of more than 15%. The bank raised its profit forecasts for fiscal 2022 and 2023 by 13 per cent and 8.8 per cent, respectively.

Macquarie expects that Oshudan's recent entry into new markets will pave the way for future sales growth. Novel coronavirus Omicron may cause countries to take different measures to contain the epidemic, but he is expected to strengthen his ecommerce business to make up for weak offline sales. The bank pointed out that Oshudan acquired 83 per cent of its indirect stake in Sol de Janeiro and 65 per cent of its sales came from e-commerce, which should help Oshudan enter new markets quickly. Sol de Janeiro can also use Oshudan's global distribution network to expand offline. It is expected that the addition of Sol de Janeiro will help Oshudan expand its young customer base and increase its presence in North America.