GTHT has published a research report expressing optimism about BEST PACIFIC's (02111) ability to leverage its years of experience in the flexible fabric sector, deepen cooperation with renowned domestic and international sportswear and outdoor brand customers, and secure more orders through its mature overseas production capacity amid the adjustment in textile and apparel manufacturing trade patterns. The firm expects the company's net profit attributable to shareholders for 2025-27 to reach HK$5.9 billion, HK$6.4 billion, and HK$7.0 billion respectively. Using a combination of PE and PB valuation methods and taking the average, the target price is set at HK$4.42 per share for initial coverage, with an Overweight rating assigned.

Regarding future highlights: 1) Undervalued, high-dividend quality target: The company highly values shareholder returns and has maintained uninterrupted dividend payments every year since listing, with dividend payout ratios stabilizing at 50% in recent years and dividend yields exceeding 9% for four consecutive years. 2) Overseas capacity to capture more orders: The firm believes the company's mature production capacity in Vietnam, Sri Lanka and other locations positions it well to benefit from capacity layout adjustments under reciprocal tariffs, taking on more brand order transfers. 3) Quality customer base: The company's partnerships with renowned sportswear and outdoor brands all span over 5 years, and with deepening cooperation, future orders are expected to be secure.