Give Mutual Textile "Win The Market" Rating, Raise The Price To 6.7 Yuan

According to the media, the Research Report on McGonagall's haircut watch reiterated its investment rating of "outperforming the market" after the first half of fiscal year 2021 released by Intertek (01382), because it is believed that the company will still achieve continuous quarterly recovery. The bank's profit forecast for 2021 and 2022 will be increased by 7% and 4% respectively to reflect the improvement of gross profit margin, and the target price is raised from the original 6.4 yuan to 6.7 yuan.

The company's revenue in the first half of fiscal year 2021 fell 19% year-on-year to 2.45 billion yuan, 2% lower than the bank expected. However, only about 40 pips to 17.5% of the gross profit margin was seen, which was 1% higher than the bank's expectation. This was mainly due to the one-off sale income, the fair value change of derivatives and the decrease of foreign exchange loss. The bank's earnings were down 35% on year.

The bank noted that it was surprised by the new capacity of the existing Vietnamese plants by the end of 2021, meaning that the demand outlook is improving from the perspective of both existing and new customers.

Supported by increased orders from major customers such as UNIQLO, l brands and target, Intertek expects revenue growth of about 22% in the second half of fiscal year 2021, and the gross profit margin can be maintained at 17-18%.