HK Stock Market Move | TINGYI (00322) rebounds by more than 3%, Lyon believes that the company's visibility of profit growth is high.

TINGYI (00322) rebounded more than 3%, rising 3.42% at the time of writing to HK$11.5, with a turnover of HK$1.47 billion. On the news front, DBS released a research report stating that they have lowered Kangshifu's revenue forecast for 2025 and 2026 by 4%, but have raised the gross margin forecast by over 1 percentage point, especially in the instant beverage business sector, despite the increasing cost pressure of palm oil in the second half of 2025. The bank expects Kangshifu to achieve 7% core profit growth in the second half of the year, compared to the year-on-year increase of 12% in the first half, mainly benefiting from cost control, and expects an average compound annual growth rate of 10% from 2024 to 2026. The bank has raised its Kangshifu profit forecast for the next two years by 5% and 1%, reflecting increased other income. Credit Suisse believes that Kangshifu management has provided new revenue guidance targets for the fiscal year 2025, with flat to low single-digit year-on-year revenue and double-digit core net profit growth rates. Looking ahead to the second half of the year, the bank still believes that there is uncertainty in the competitive landscape and beverage recovery, so their revenue forecast is slightly below the company's guidance targets. However, due to better cost control space, Credit Suisse believes that Kangshifu's profit growth visibility is high and that its double-digit core profit growth guidance target should be achievable.