HK Stock Market Move | LUNG FUNG GROUP (02290) rose more than 5%, with retail sales in the first financial quarter increasing by 21% year-on-year. DBS gave a target price of HK$7.98.

LUNG FUNG GROUP (02290) rose by more than 5%, as of the time of writing, it rose by 5.12% to HK$3.9 with a trading volume of HK$124.761 million. On the news front, LUNG FUNG GROUP recently announced that its retail sales for the first quarter ending on June 30 reached HK$830 million, a year-on-year increase of 21.2%, while same-store sales grew by 10.3%. The company noted that retail sales in June were impacted by consecutive rainy days, but foot traffic increased and the retail network expanded. By the end of June, the company had 31 stores, 4 more than the same period last year. DBS released a research report, initiating coverage on LUNG FUNG GROUP with a "buy" rating and a target price of HK$7.98. The bank predicts the group's core profits for the fiscal years 2027-2028 ending in March to be HK$361 million and HK$423 million respectively, and believes that the current 5.6 times P/E ratio for the 2027 fiscal year and a dividend yield of 10.7% provide attractive potential for revaluation.