Shares of FOREST CABIN (02657) rose nearly 6% in afternoon trading. As of press time, the stock was up 5.26% at HK$61.05, with a turnover of HK$17.1422 million.

On the news front, on October 9, FOREST CABIN opened its first Hong Kong branch in East Point City, Tseung Kwan O. Brand founder Sun Laichun stated that the company plans to open 27 to 30 stores in Hong Kong over the next 3 to 5 years. Annual revenue per store in Hong Kong is expected to reach HK$4 million to HK$5 million. FOREST CABIN views Hong Kong as a core hub for entering the Southeast Asian market and will simultaneously expand through channels such as Watsons.

Sinolink Securities issued a research report stating that FOREST CABIN is in a stage of accelerating brand momentum release, having built a long-term brand asset that is difficult to replicate through more than twenty years of offline operations, with performance continuously being validated. We estimate net profit attributable to shareholders for 26-28 to be RMB 528 million, 692 million, and 914 million respectively, and assign a target price of HK$79.79, initiating coverage with a "Buy" rating.