HK Stock Market Move | China Feihe (06186) rose nearly 3%, the company expects sales growth to accelerate in the second half of the year. UBS is optimistic about improving revenues in the next two years.

CHINA FEIHE (06186) rose nearly 3%, and as of the time of writing, it rose 2.6% to 5.92 Hong Kong dollars, with a turnover of 41.34 million Hong Kong dollars. UBS released a research report stating that CHINA FEIHE's management indicated last week in Beijing that sales in the second half of the year are expected to be better than in the first half, benefiting from the rising sales trend in the third quarter and providing guidance on revenue and net profit growth this year due to a better product mix, at 5% to 10% and over 10% respectively. The bank believes that the company's stock is undervalued compared to other consumer goods listed companies in Hong Kong, raising the target price from 5.1 yuan to 6.65 yuan, with a "buy" rating. UBS pointed out that as the birth rate has rebounded this year, and over 70% of CHINA FEIHE's sales come from the infant formula for newborns in the second and third trimesters, as well as the upcoming fertility subsidies, the company's revenue is expected to improve from 2025 to 2026. The bank also raised its earnings per share forecast for 2021 to 2026 by 3% to 13%.