HSBC downgrades Haitian International stock rating to Hold on fair valuation

Published 21/08/2025, 06:58
HSBC downgrades Haitian International stock rating to Hold on fair valuation

Investing.com - HSBC downgraded Haitian International (HK:1882) from Buy to Hold with a price target of HK$22.00 on Thursday.

The downgrade follows a 13% rally in Haitian’s stock price since July, which has pushed its valuation to 9.6x forward PE, approximately one standard deviation above its three-year average, according to HSBC.

HSBC cited slowing orders from overseas markets in July and August as a key factor in its decision, along with expectations that Chinese demand is unlikely to show significant recovery in the second half of the year due to persistent tariff uncertainties.

Haitian International has maintained its 2025 revenue guidance of 10% year-over-year growth, which implies second-half 2025 growth of 8% year-over-year, slightly below HSBC’s estimate of 9.5%.

The research firm also noted it does not expect an increase in dividend payout ratio given Haitian’s capital expenditure plans for overseas capacity construction in 2025 and 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.