CCB International initially gave Zhuo Hyatt Holdings (0653.HK) an outperformance rating of HK $1.60 (equivalent to 16 times 12-year price-to-earnings ratio); it means that Zhuo Yue operates both retail and beauty parlors, which cater to customer needs and helps promote the brand; while branch sales of high-grade milk powder can also drive the flow of people; it plans to launch more brand products, which will help improve gross profit margin Its Guangzhou retail business broke even within one year, which was better than the management expected. It is estimated that Zhuoyue's earnings per share will grow at a compound annual growth rate of 23% in 10-13.

The stock fell 1.46 per cent to HK $1.35 yesterday.