CICC Slightly Raises SHOUCHENG (00697) Target Price to HK$2.73, Performance Meets Expectations

Stock News
09/04

CICC published a research report stating that it has raised its net profit attributable to shareholders forecasts for SHOUCHENG (00697) for 2025 and 2026 by 7% and 6% respectively, to 650 million yuan and 750 million yuan, representing year-over-year growth of 58% and 16% respectively. This primarily reflects the growth in the company's core business and potential investment returns, while maintaining an "outperform" rating. Considering the company's positive development momentum, the target price was raised by 5% to HK$2.73, equivalent to price-to-book ratios of 1.8x and 1.9x for this year and next year respectively. SHOUCHENG's first-half revenue and gross profit increased by 36% and 26% year-over-year respectively, to 731 million yuan and 295 million yuan, with net profit attributable to shareholders rising 30% year-over-year to 339 million yuan, meeting expectations. The company announced a special dividend of 768 million yuan on March 26 this year, combined with an interim dividend of 271 million yuan, bringing the total declared dividend amount for the first half to 1.039 billion yuan, corresponding to a dividend yield of 5.83%.

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