2021.09.21
■ Fufeng reported 1H21 revenue of Rmb9.5bn, up 16.6% yoy, and net profit of
Rmb591m, up 55.8% yoy, in line with our expectation.
■ Facing the raising raw material prices, Fufeng managed to pass the pressure to its
customers by increasing the selling prices. Fufeng also limited its production volume
to deal with more intense competition in 1H21.
■ Management expects the competition situation in 2H21F to be better than 1H21.
■ Reiterate Add with an unchanged DCF-based TP of HK$3.9.
