HK Stock Market Move | CRYSTAL INTL(02232) rose more than 3%, institutions optimistic about the company's fundamentals and valuation after entering the market, and the continuous penetration of order fulfillment capabilities in all product categories.

CRYSTAL INTL (02232) rose more than 3%, up to 2.3% at the time of writing, at 5.77 Hong Kong dollars, with a turnover of 140,402,000 Hong Kong dollars. Guotai Junan released a research report stating that CRYSTAL INTL will be included in the Hang Seng Index Series in February 2025, officially effective on March 10. Compared to Jiuxing, there is a significant potential for valuation increase in the short term, and bullish on the medium to long-term development. After STELLA HOLDINGS was included in September 2024, the stock price rose by about 20% until January 2025, with valuation increased from 8X to 10X. Both Jiuxing and Crystal International have strong order growth certainty, profit margin improvement, low valuation, and high dividend features. Currently, Crystal International (8x) valuation against Jiuxing (10x) still has room for significant increase, and bullish on the fundamental and valuation improvement of Crystal International after inclusion in the index. The bank continued that from the revenue perspective, Crystal International's largest customer Uniqlo operates in a high prosperity period, with performance exceeding market expectations multiple times in 2024, and a optimistic outlook for FY2025 (expected revenue +9.5%). The company will focus on women's clothing business in the future, and Crystal International, as a core supplier of women's clothing, is expected to benefit. In the sports customer segment, brands like Adidas are in high demand, with Crystal International having a low market share and significant room for growth; lululemon has continued to have high order growth since entering in 2022; Crystal International is the only clothing factory in the latest list of key suppliers for Nike. In the traditional sectors like jeans, underwear, etc., due to the comprehensive demand for multiple product categories from brands, Crystal International, with its full category supply capability, continues to penetrate orders.