The Zhitong Finance App learned that Minhua Holdings (01999) was once again active, rising about 5% in early trading. According to Bank of America, the industry will be revalued, and leading companies are expected to receive valuation premiums. The rating of Minhua Holdings was upgraded from “outperforming the market” to “neutral”, and the target price was raised to HK$9.8. Dongwu believes that the company's revenue in Tier 1 and 2 cities is relatively high, and post-epidemic recovery is more flexible. As of press release, Minhua Holdings rose 4.97% to HK$909, with a turnover of HK$46 million.

This week, Bank of America released an updated report saying that the soft goods industry will be re-valued this year. At the same time, the potential removal of inventory inflection points in Europe and the US may also drive export recovery, and leading companies will receive valuation premiums. The rating of Minhua Holdings (01999) was upgraded from “outperforming the market” to “neutral”, and the target price was raised to HK$9.8. Earlier, Dongwu Securities indicated that the demand-side policy in '23 may gain further strength, and there is a high degree of certainty that the fundamentals of the household sector will be restored. I recommend Minhua Holdings: domestic sales have gradually stabilized and recovered. The revenue share of Tier 1 and 2 cities is relatively high, and post-epidemic recovery is more flexible. FY23 PE is only 10x.