Original title: Yamato: Hong Kong Television (01137) Expected performance in the second half of the year may exceed management's earlier goals and reaffirms “outperform the market” Rating Source: Zhitong Financial Network

The Zhitong Finance app learned that Daiwa released a research report saying that Hong Kong TV (01137)'s performance in the second half of the year may well exceed the target set by management earlier of 2.8 billion to 3 billion yuan, focusing on GMV and user growth, and expected profit margins may also rise.

According to the report, HKTVMall currently has about 250,000 daily users and over 500,000 product inventory units. The average purchase frequency per customer increased from 3.26 in the fourth quarter of last year to 4.53 in the second quarter of this year, making it the largest shopping platform in Hong Kong.

Yamato said that although Hong Kong TV has no plans to drastically increase the take-rate (take rate), and the gross margin is expected to remain around 25% of GMV in the short term, the proportion of third-party sales will rise. Driven by increased operating leverage and online advertising contributions, the net profit margin will continue to rise in the next few years. Considering that GMV and profit margins have room to rise, Daiwa raised its earnings per share forecast for 2020 to 2022 by 1% to 8%, and raised the target price from HK$12 to HK$13, reaffirming its “outperform the market” rating.