CICC: Maintain "outperform" rating on Cheung Kee Wong Lo Kat (06979), raise target price to 11.2 Hong Kong dollars.

According to the intelligence communication finance and economics app, Zhongjin Securities released a research report stating that it is expected that the liquor company Zhenjiu Litudu (06979) will fully clear its channel inventory this year and the old products are expected to resume growth next year. Additionally, the "Dazhen" brand will contribute to revenue growth. Therefore, the adjusted net profit forecast for 2025 is lowered by 8.3% to 11.0 billion yuan, and the adjusted net profit forecast for 2026 is raised by 5.4% to 14.4 billion yuan. Based on the profit forecast for 2026 and the overall market valuation trends, the target price is raised by 27% to 11.2 Hong Kong dollars, corresponding to a P/E ratio of 31x/24x for 2025/26. Currently, the price corresponds to a P/E ratio of 27x/21x for 2025/26, with a 16.8% upside potential. The company's performance is expected to outperform the industry, and thus the rating remains as outperform.