Analyst Terence Cheng of Morgan Stanley maintained a Buy rating on Crystal International Group Limited (2232 – Research Report), with a price target of HK$6.25.
Terence Cheng has given his Buy rating due to a combination of factors that suggest a positive outlook for Crystal International Group Limited. The company’s recent earnings release showed impressive results, with revenue strength and effective operational expense management contributing to a record high operating profit margin.
Furthermore, the company has increased its dividend payout ratio and announced a special dividend, which is likely to appeal to long-term investors. These financial improvements, coupled with a strong structural earnings growth, underpin Cheng’s optimistic view. He estimates there is a high probability of the stock price rising in the near term, making it an attractive investment opportunity.