HK Stock Market Move | H&H INTL HLDG (01112) rose more than 3% and the company's infant formula business saw positive growth. Morgan Stanley indicates that there is a possibility of a higher re-rating for the company.

H&H International Holdings (01112) rose more than 3%, reaching 2.84% by press time, reaching 12.33 Hong Kong dollars, with a turnover of 38.4456 million Hong Kong dollars. Changjiang released a research report stating that the company's milk powder business has experienced a period of destocking of old products and replenishment after the update of the new national standard, and is expected to achieve positive growth in Q1 2025. Sales exceeded expectations after landing, with a growth rate of over 40% in Q1 2025. The bank is optimistic about the company's long-term accumulation of brand operating capabilities and its positioning as a global family nutrition supply provider. Morgan Stanley stated that among mainland consumer goods stocks rated "in sync with the market" by the bank, H&H International Holdings has a high likelihood of revaluation. Morgan Stanley raised H&H's target price from 11.5 Hong Kong dollars to 13.4 Hong Kong dollars, believing that the milk powder base in the second half of the year is low, and demand for stage 1-2 milk powder products is strong, expecting improved performance in the coming seasons.