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<Research> JPM Cuts SF HOLDING (06936.HK) TP to HKD40; Room to Catch Up if Operations Improve
JPM said in a research report that SF HOLDING (06936.HK)'s 1Q results slightly beat expectations, extending the mild growth momentum seen in 4Q last year. Despite a high base and m...
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<Research> JPM Cuts SF HOLDING (06936.HK) TP to HKD40; Room to Catch Up if Operations Improve
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JPM said in a research report that SF HOLDING (06936.HK)  0.000 (0.000%)    Short selling $5.30M; Ratio 7.247%   's 1Q results slightly beat expectations, extending the mild growth momentum seen in 4Q last year. Despite a high base and macro uncertainties, the company further strengthened its product mix optimization and gross margin recovery trend.

The broker believes the market reaction to the results was muted mainly because, following the companys strategic shift, investor sentiment remains evidence-driven, while the profitability of KLN (00636.HK)  0.000 (0.000%)    Short selling $1.59M; Ratio 20.637%   and its international supply chain business is still not clearly visible. Year to date, SF HOLDING H-shares and S.F.HOLDING (002352.SZ)  0.000 (0.000%)   A-shares have risen 4% and fallen 3%, respectively. If operations continue to improve in 2Q to 3Q and the outlook for overseas markets becomes clearer, the share price will have room to catch up.

The broker lowered its earnings forecasts for 2026 to 2028 by an average of about 4%. It cut the H-share TP from HKD47 to HKD40 and the A-share TP from RMB50 to RMB42, while maintaining an Overweight rating. (ss/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-13 16:25.) (A Shares quote is delayed for at least 15 mins.)

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