The Zhitong Finance App learned that CMB International released a research report stating that it maintained the Taobo (06110) “buy” rating and lowered the net profit forecast for the 2025 and 2026 fiscal years by 10% and 13% to reflect the slowdown in sales growth in the following industries; improvements in retail discounts were lower than expected; and the operating leverage ratio declined, and the target price dropped from HK$9.23 to HK$6.78. The bank said the forecast has become more conservative, but there is still a possibility of a turnaround in FY2025 and beyond, plus a 7% dividend rate for FY2025 to protect the stock price.

According to the report, the high base has had an adverse impact on both the industry and Taobo, and they are cautious about the first quarter of 2025. However, the turnaround in the coming seasons is still an important catalyst, including the possibility that online and offline sales growth will accelerate, and the benefits that brands may bring from more investment in product launches and marketing for the Paris Olympics.