CICC: Maintains "outperform" rating on PRADA (01913) and raises target price to 80 Hong Kong dollars.

Zhongjin released a research report stating that it maintains a "outperform the market" rating on PRADA (01913), with a target price raised by 6.7% to HK$80. The bank indicated that it has raised its revenue forecast for this year by 5%, EBIT and group proportionate net profit forecast by 2% and 4% respectively, mainly due to capital expenditure slightly higher than expected. It is expected that next year, revenue will reach 6.752 billion euros, EBIT will reach 1.717 billion euros, and group proportionate net profit will be 1.142 billion euros. Zhongjin pointed out that, calculated at a fixed exchange rate, PRADA's annual net profit is expected to increase by 17% to 5.432 billion euros, in line with expectations. Pre-tax profit is expected to increase by 21% to 1.28 billion euros, with a gross profit margin of 23.6%, also in line with expectations. The group's annual net profit is expected to increase by 25% to 839 million euros, with a profit margin of 15.4%, benefiting from operating leverage and a lower tax rate, performing better than expected.