According to the Zhitong Finance APP, Stella Holdings (01836) rose nearly 4%, as of the time of publication, it rose 3.73% and reported HKD 15.58, with a turnover of HKD 15.03 million.

Regarding the news, Citigroup issued a research report stating that it reiterated a "buy" rating on Stella Holdings, initiated a 90-day positive catalyst observation, and estimated that the company will issue a profit warning in mid-July; it is expected that the company's first-half profit will increase by about 41% year-on-year to USD 79 million, compared to USD 56 million in the first half of last year, and the target price has been raised from HKD 18 to HKD 19.6.

The bank believes that the strong performance of Stella Holdings in the period is mainly due to the utilization rate of key customers' production capacity, which has risen from 65% in the first half of last year to 70%, and has reached 80% in the first half of this year, which drives the sales of the company's sports business division. The company continues to optimize its product mix and it is estimated that the high-margin luxury and fashion business is expected to further increase revenue contribution. There is a seasonal bullish factor because the second quarter is usually the sales peak season of sports and fashion footwear.