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Investing.com - HSBC upgraded Jason Furniture (Hangzhou) Co. Ltd (SS:603816) from Hold to Buy and raised its price target to RMB36.90 from RMB24.00.
The upgrade follows Jason Furniture’s second-quarter performance, which exceeded HSBC’s expectations with revenue increasing 7.2% year-over-year and net profit rising 5.4%. Recurring net profit grew 9% compared to the same period last year.
HSBC attributed the strong performance to several factors, including 20% year-over-year revenue growth in online channels during the second quarter. The company’s overseas business showed resilience with 8% revenue growth despite tariff concerns.
Cost control and efficiency initiatives in manufacturing and administrative expenses helped offset tariff impacts, boosting the operating margin by 0.2 percentage points year-over-year to 11.5%.
HSBC has raised its 2025-27 revenue estimates for Jason Furniture by 4-9% and expects second-half 2025 revenue and recurring net profit to grow 5% and 10% year-over-year, respectively, citing the fading negative impact of the property sector on the furniture industry.
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