2021.09.01
■ King’s luck announced that 1H21 sales grew by 32% to Rmb3.85bn, and net profit rose by 31% yoy to Rmb1.34bn, in line with expectations, driven mainly by strong sales of premium and above products in its home market – Jiangsu province.
■ Covid-19 volatility in Jiangsu province is basically under control now, and the catering and tourism places are gradually opening, so we expect the impact on the Company’s sales in the upcoming peak season to be limited and expect its sales to grow by 14% yoy in 2H21 and net profit to grow by 5% yoy because of the high base effect of 2H20.
■ Reiterate Add with an unchanged DCF-based TP of Rmb62.
