HK Stock Market Move | FOREST CABIN (02657) rose nearly 6% in the afternoon. FOREST CABIN's first Hong Kong store has landed, with plans to open 27 to 30 stores in 3 to 5 years.

FOREST CABIN (02657) rose nearly 6% in the afternoon. As of press time, it was up 5.26% at HK$61.05, with a turnover of HK$17.1422 million. On the news front, on October 9, FOREST CABIN opened its first Hong Kong branch at East Point City in Tseung Kwan O. Brand founder Sun Laichun said the company plans to open 27 to 30 stores in Hong Kong over the next 3 to 5 years. Annual revenue for a single Hong Kong store is expected to reach HK$4 million to HK$5 million. FOREST CABIN views Hong Kong as a core hub for entering the Southeast Asian market and will simultaneously expand channels such as Watsons. Sinolink issued a research report stating that FOREST CABIN is in a stage of accelerating brand momentum, with more than 20 years of offline operations forming long-term brand assets that are difficult to replicate, and its performance is being continuously validated. We estimate net profit attributable to shareholders of RMB 528 million/692 million/914 million for 26-28, respectively, and give a target price of HK$79.79, initiating coverage with a "Buy" rating.