The Zhitong Finance App learned that Bank of America Securities released a research report stating that it reaffirmed the “buy” rating of Mingchuang Premium (09896), raised the forecast for this year and next two years by 3% and 5%, and raised the target price from HK$56.9 to HK$59.3. It believes that the company is stabilizing and normalizing revenue growth and that profit margins will continue to expand. The company's first-quarter results were slightly higher than the forecast. Revenue and non-IFRS net profit increased 26% and 28%, respectively, which meant that the net profit margin increased 20 pips to 16.6% year over year.

The bank pointed out that the transformation of Mingchuang Premium's brand positioning from cost performance to interest has led to a recovery in same-store sales exceeding expectations; profits continue to benefit from brand upgrades and user experience optimization, mainly in overseas markets; using China's position as a world factory, the company strengthens its supply chain and further meets growing consumer demand over the long term. The current price of the stock is equivalent to 19 times the projected price-earnings ratio for this year, corresponding to an average compound annual growth rate of 22% in earnings per share from 2023 to 2026. The valuation seems low.