Citi: Initiates coverage on LUNG FUNG GROUP (02290) with a "buy" rating, target price of HK$7.98.

OCBC released a research report stating that LUNG FUNG GROUP (02290) is the largest drug retailer in Hong Kong based on retail sales, with a market share of 5.2% in the 2025 fiscal year. In the categories of drugs, health, and beauty, it ranks third with a market share of 5.8%. They have initiated coverage with a "buy" rating and a target price of HK$7.98. The bank forecasts the group's core profit for the fiscal years 2027-2028 to be HK$361 million and HK$423 million respectively, by the end of March. They believe that the current 5.6x PE ratio for the 2027 fiscal year and a dividend yield of 10.7% provide attractive potential for value revaluation.