CMB International Securities analyst Walter Woo has maintained their bullish stance on 5LX stock, giving a Buy rating on August 13.
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Walter Woo’s rating is based on a combination of factors that suggest a positive outlook for China Lilang Ltd. Despite a cautious outlook for the second half of 2025 and a recent miss in results, the company maintains a strong dividend yield of 9% for the fiscal year 2025, which is attractive to investors. The management’s commitment to a 10% retail sales growth target for FY25E, alongside an upward revision in new retail-related sales growth to 20%, indicates confidence in the company’s strategic direction.
Furthermore, the strong sales growth momentum in the smart casual segment, which saw a 32% increase in the first half of 2025, supports the company’s growth prospects. However, Walter Woo has taken a more conservative stance on profitability due to rising operational expenses and potential challenges in product mix and operating leverage. Despite these concerns, the stock’s current trading at 8x FY25E P/E and the attractive dividend yield underpin the Buy rating, even as the target price has been adjusted to HK$ 4.42.
In another report released on August 13, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a HK$4.00 price target.