BOC International: Lowering the target price of Mingchuang Premium (09896) to HK$26.4 to maintain “buying”

The Zhitong Finance App learned that BOC International released a research report stating that the target price for Mingchuang Premium (09896) was lowered from HK$45.5 to HK$26.4, maintaining the “buy” rating. The bank lowered its 2026-2028 profit forecast by 9-23% to reflect overseas market adjustments and higher cost rate assumptions brought about by major Chinese stores and IP investments.

The bank said that in the first half of 2026, the company's revenue increased 22.4% year on year to 11.5 billion yuan (same below); adjusted operating profit increased 5% year on year to 1.63 billion yuan, and adjusted net profit decreased 1.7% year on year to 1.22 billion yuan, mainly hampered by sales expenses. The company lowered its guidelines. In the second half of the year, the Group's revenue is expected to grow by double digits (previously high double digit growth). Specifically, in the second half of the year, Mingchuang Premium's China/overseas revenue is expected to grow by double digits/low units, and TOP TOY's revenue is expected to remain flat; adjusted operating profit for the whole year decreased by 3-4 percentage points year on year. Management believes that 2026 is a low phased profit margin.