Changes in Hong Kong stocks | Quanfeng Holdings (02285) fell more than 5% at the end of the session and still rose nearly 30% in the past five days, HSBC says the former president of Chuangke and Technology joined positively

The Zhitong Finance App learned that Quanfeng Holdings (02285) fell more than 5% at the end of the session, and the cumulative increase over the past five trading days was still close to 30%. As of press release, it decreased by 5.26% to HK$25.6 million, with a turnover of HK$118 million.

According to news, Joseph Galli Jr., the former CEO of Chuangke Industrial, joined Quanfeng Holdings as the new CEO on September 10. Founder Pan Longquan will remain the chairman. HSBC believes that during Galli's tenure at I&T from 2008 to 2024, I&T's revenue and net profit recorded compound annual growth rates of 9.5% and 27.7% respectively, and believes that his experience can have a positive impact on Quanfeng.

HSBC indicated that it raised Quanfeng's target price-earnings ratio from 11 times to 14.3 times, discounted 42% from Chuangke's price-earnings ratio of 24.6 times, and applied the 2027 earnings per share forecast of 29 US cents to arrive at a new target price of HK$32.5. The bank expects growth to accelerate in the medium term under the leadership of the new CEO. The next catalyst is for Galli to explain future growth and transformation plans to investors.