BOCOM INTL: Shaving Waves Bo (06110) profit forecast for 2027-28 is 5-11%, with a target price of HK$2.98.

BOCOM INTL released a research report stating that it has lowered its profit forecast for TAOBO (06110) for the years 2027-28 by 5-11%, and introduced a forecast for 2029. Based on a 13 times target price-earnings ratio for the 2027 fiscal year profit forecast, the target price of HK$2.98 and a "neutral" investment rating are maintained. Although the company still faces uncertainty, an expected dividend yield of over 10% will provide sufficient downside protection for the stock price. TAOBO's operating income for the 2026 fiscal year was 25.74 billion RMB, a decrease of 4.7% year-on-year, in line with the bank's previous expectations. The decline in revenue narrowed to 3.7% in the second half of the fiscal year. Net profit attributable to shareholders decreased by 1.5% to 1.27 billion RMB, with a net profit margin improving by 0.1 percentage points to 4.9% compared to the same period last year, roughly in line with the bank's expectations. The bank pointed out that the management of TAOBO stated that there is certain pressure on the revenue side for the 2027 fiscal year. The company will continue its strategy of prioritizing efficiency, striving to stabilize profits compared to the same period last year through discount management and overall operational optimization, and to improve the net profit margin compared to the same period last year. In terms of recent sales trends, the management indicated that demand has slowed down after the Spring Festival and there is no significant narrowing of discounts in the overall 618 event campaign.