Quanfeng Holdings (02285) rose nearly 6%, as of press time, up 5.9%, at HK$19.4, with a turnover of HK$10.0085 million.
Quanfeng Holdings (02285) rose nearly 6%, as of press time, up 5.9%, at HK$19.4, with a turnover of HK$10.0085 million.
On the news front, Quanfeng Holdings is expected to have a net income of $60-65 million in the first half of 2024, a year-on-year increase of 22-33%. Guosen Securities pointed out that this year, with favorable weather conditions and promotional activities by the company, flagship brands such as EGO have strong sales performance, accelerating downstream inventory turnover, and the company's shipments and orders are gradually recovering. Looking ahead to the second half of the year, with the bottoming out of channel inventory and the approach of interest rate cuts, it is expected that the company's revenue will continue to accelerate its growth trend and achieve its goal of a 15%-20% increase in full-year revenue.
According to CITIC Securities research report, the company's products have reached a relatively low level in channel inventory. The rapid growth of downstream demand has led to strong demand for replenishment in some months. The company believes that it can basically determine the arrival of the OPE industry replenishment cycle. Looking ahead, the bank believes that the sustainability of industry replenishment needs to match the growth rate of terminal demand. In the medium to long term, it is expected that the repair of real estate after the interest rate cut in the US will drive the recovery of durable consumer goods demand, and the bank is bullish on Quanfeng's performance in the industry after the demand recovery with the advantage of lithium battery products.