Nomura lifted its target price for Tai Hing Group Holdings (06811) to HK$2.5 from HK$2.05 and maintained its "buy" rating.
Tai Hing issued a positive profit alert on 1 March. The research house expects FY2020 overall revenue to record a 4.6% decline, adversely impacted by various social distancing measures, such as seating restrictions and reduced operating hours. But it expects FY2020 net profit growth to be a positive surprise to the market versus COVID-19 impact. Hence, it raised its net profit forecast by 165% for FY2020.
It also raised its FY2021 sales/net profit forecasts by 6.1%/31% in anticipation of a visible FY2021 foot traffic recovery. Tai Hing opened new restaurants throughout the pandemic period and rolled out new concepts, which will likely help to expand its reach to new consumers, Nomura added.
02/03/2021 13:59
{I-bank focus}Nomura lifts Tai Hing Group (06811) to HK$2.5
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