Newsletter summary

Special step International rating "outperforms the industry", EPS forecasts 0Maco4dslot.450.52 yuan, and the target price is raised to 6.58 Hong Kong dollars. The company plans to spin off its loss-making business and pay a special dividend of $151 million, which is expected to boost profitability. The growth momentum of the new brands Sokoni and Mayer is good, and the risks include increased competition in the industry.

Text of news flash

[CICC maintains its "outperform industry" rating, raising its target price by 20 per cent to HK $6.58) the CICC research report points out that market confidence is expected to be boosted after Tebu International (01368) spun off its loss-making business. Bank to Special step International 2024 Universe for 25 yearsMaco4dslotEarnings per share (EPS) are forecast to be 0.45 yuan and 0.52 yuan respectively, maintaining its "outperform industry" rating. [special step International plans to sell the brand KPGlobal and plans to pay a special dividend of $151 million] Special step International announced that the company's controlling shareholder, the Ding family, will acquire KPGlobal for $151 million at book value. The brand owns Gesway and Paladin. After the sale, Tebu International plans to use the cash from the exchange to pay a special dividend of $151 million to shareholders. [after the completion of the transaction, the profitability of Tebu International is expected to be significantly improved] CICC believes that if the transaction is completed smoothly, Tebu InternationalMaco4dslotProfitability is expected to be significantly improved. The company plans to distribute all the proceeds from the sale of KPGlobal in the form of a special dividend, and Hillhouse plans to pay 6.Maco4dslotThe redemption of US $5 million of Galaxy convertible bonds and the subscription of HK $500m of convertible bonds are expected to have no significant impact on the company's cash flow. In addition, Tebu International can reduce the loss of the new brand by divesting KPGlobal, while interest income from KPGlobal is expected to exceed $5 million. [Tebu International will focus on Soconi and Mayer brands to promote the rapid development of brands] after the divestiture of KPGlobal, Tebu International plans to focus its resources on the better development momentum of Soconi and Mayer brands. The company will increase channel construction and marketing resources to promote Sokani and Mailer to achieve faster growth. From January to April this year, Sokoni and Mailer outperformed expectations, Sokani achieved rapid growth, and Mayer has become profitable. [risks faced by Tebu International include intensified competition in the industry and lower-than-expected terminal retail environment] although the development prospect of Tebu International is promising, however, we still need to pay attention to risk factors such as increased competition in the industry, the terminal retail environment is not as expected, and the progress of the spin-off loss business is not as expected.