Dongwu Securities: Maintains a "buy" rating for Eight Horses Tea Company (06980.HK) with stable operations and performance exceeding expectations in the first half of 2021.

According to the Zhitong Finance and Economics App, Dongwu Securities released a research report stating that they predict the net profit attributable to shareholders of Bama Tea (06980.HK) to be 2.79, 3.32, and 3.76 billion yuan in the years 2026-2028 (originally expected to be 2.55, 2.94, and 3.26 billion yuan). The corresponding current PE ratios are 5.0, 4.2, and 3.7 times, respectively. The rating of "buy" is maintained. The bank believes that the company's current valuation is in a low range, short-term business momentum continues to rise, and in the medium to long term, relying on the thickness of the brand gene, standardized quality control capabilities, and an all-channel, all-domain, deep market penetration strategy, the company is expected to continue to improve its brand concentration.