DBS: Initial “Buy” Rating Target Price for Longfeng Group (02290) HK$7.98

The Zhitong Finance App learned that DBS released a research report saying that Longfeng Group (02290) is the largest pharmaceutical retailer in Hong Kong in terms of retail sales. The market share for FY2025 was 5.2%, ranking third in pharmaceuticals, health and beauty. The market share reached 5.8%, covering the “buy” rating for the first time, with a target price of HK$7.98.

The bank expects the Group's core profit for the 2027-2028 fiscal year ending the end of March to be 361 million yuan and 423 million yuan respectively. It believes that 5.6 times the current price-earnings ratio and 10.7% dividend ratio for fiscal year 2027 provide attractive upward potential for value revaluation.