The Zhitong Finance App learned that Perfect Healthcare (01830) fell by more than 4%, and the stock has already declined by more than 26% during the month. As of press release, it decreased by 4.08% to HK$2.35, with a turnover of HK$2,513,200.
According to the news, Galaxy International recently reported that the target price for Perfect Care was lowered by 40.8%, from HK$7.4 to HK$4.38. The bank believes that Perfect Healthcare's stock price fell by more than 20% in the last 10 trading days, mainly because the market expects poor operating performance in the first quarter of 2024. The company's revenue from Hong Kong operations is expected to increase in units in the fourth quarter of 2023, but revenue declined by more than 10% in the first quarter of this year due to Hong Kong people traveling north and overseas.
Furthermore, the bank expects the company's performance in the mainland to continue to weaken in the second half of fiscal year 2024, mainly because consumer sentiment remains sluggish. The company's total revenue is expected to drop 4% year over year in the second half of 2024. Furthermore, the company's revenue growth will continue to decline in fiscal year 2025, mainly due to fewer new store openings. The company is expected to open 10 new stores in Hong Kong and continue to do so. However, in fiscal year 2025, the company will suspend the opening of new stores in the mainland, mainly due to weak macroeconomic conditions.
