The Zhitong Finance App learned that although the valuation was cheap, the target price was lowered from HK$31.7 to HK$28.41 due to a lack of catalysts to maintain Hengan International's (01044) “holding” rating. The target price was lowered from HK$31.7 to HK$28.41, mainly reflecting a lowered sales assumption.

The bank expects the company's sales growth trend this year to become normal, reaching a medium number of units. It is also expected that in the second half of last year, more emphasis will be placed on profit margins rather than market share, especially in the fourth quarter, when seasonal promotions are strong. The bank expects a 32% year-on-year increase in net profit (excluding foreign exchange) and a 3% increase in sales in the second half of last year.