CICC: Maintains outperform rating on PRADA (01913), but lowers net profit forecast.

CICC released a research report stating that PRADA (01913) third-quarter revenue increased by 9% when calculated at a fixed exchange rate, with a total sales of 1.33 billion euros, slightly exceeding market expectations. The bank maintained a "outperform" rating on PRADA with a target price of 75 Hong Kong dollars. The bank indicated that due to adverse foreign exchange impacts on PRADA and the expected additional loans needed for the acquisition of Versace, financial costs have increased, leading to a corresponding downward revision of the net profit forecast for this year by 7.5% to 880 million euros. The bank also adjusted PRADA's revenue and EBIT forecasts for this year by 6.1% and 6.9% to 5.731 billion and 1.359 billion euros, respectively. Due to intensified competition, the bank lowered its revenue forecast for next year by 9.6% to 6.155 billion euros, with the EBIT and net profit forecasts for the period being reduced by 13.2% and 14.1% to 1.492 billion and 976 million euros, respectively.