Lyon: Li & Fung Limited (01913.HK) facing pressure on demand, lowering target price to 50 Hong Kong dollars, reiterate "outperform" rating against the market.

According to the Wise News Financial APP,Lyon issued a research report stating that it has lowered its net profit forecast for Prada (01913.HK) for the years 2025 to 2027 by 5% to 6% based on lower sales forecasts for Prada and MiuMiu, increased advertising and promotional expenses, and higher sales cost forecasts. The valuation is reduced, with the enterprise value to EBIT ratio forecasted at approximately 9 times for the next year (originally 13 times). The target price has been lowered from HK$72 to HK$50, but maintains an "outperform the market" rating, as the market share of MiuMiu is still growing and the risk-return ratio is attractive.