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<Research>Citi Downgrades CHINA FEIHE (06186.HK) to Neutral, Cuts TP to HKD5.5
Citi issued a research report on CHINA FEIHE (06186.HK), which released a profit warning for 1H25, projecting revenue to subtract by 8-10% YoY to RMB9.1-9.3 billion, and net profit...
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<Research>Citi Downgrades CHINA FEIHE (06186.HK) to Neutral, Cuts TP to HKD5.5
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Citi issued a research report on CHINA FEIHE (06186.HK)  +0.010 (+0.295%)    Short selling $18.76M; Ratio 21.445%   , which released a profit warning for 1H25, projecting revenue to subtract by 8-10% YoY to RMB9.1-9.3 billion, and net profit to shrink by 37-47% YoY to RMB1-1.2 billion, which was below the broker's expectations.

The weak performance was attributed mainly to unexpected rivalry from key IMF players’ subsidy programs under a soft demand backdrop.

Given the potential negative reaction of CHINA FEIHE's stock price due to its weak financial performance and the limited stimulus from national childcare subsidy policies, Citi downgraded CHINA FEIHE from Buy to Neutral.

Furthermore, in wake of a 9-14% decline in CHINA FEIHE's revenue, reduced government subsidies, and weaker assumptions for GPM and OPM, Citi lowered its earnings estimates for 2025-27 by 26-35%, and the target price from HKD7.1 to HKD5.5.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-10 16:25.)

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