---
title: "Morgan Stanley lowers the target price for CHINA FEIHE to 6 yuan, rating \"Overweight\""
description: "JP Morgan has lowered the target price for CHINA FEIHE to 6 yuan, maintaining an \"Overweight\" rating. Although the company's stock price has declined following the profit warning, JP Morgan believes t"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/247568534.md"
published_at: "2025-07-08T03:15:28.000Z"
---

# Morgan Stanley lowers the target price for CHINA FEIHE to 6 yuan, rating "Overweight"

> JP Morgan has lowered the target price for CHINA FEIHE to 6 yuan, maintaining an "Overweight" rating. Although the company's stock price has declined following the profit warning, JP Morgan believes the fundamentals are strong, expecting sales and profits to grow by 10% and 18% respectively in the second half of the year. The full-year sales are expected to increase by 0.5%, while adjusted profits are projected to decline by 14.6%. The compound annual growth rates for sales and profits from 2025 to 2027 are expected to be 3.8% and 13.1%

JP Morgan published a research report indicating that CHINA FEIHE (06186.HK) experienced a decline in stock price after issuing a profit warning. The bank believes that the company's fundamentals remain strong, and the previous stock price was an excessive correction. The company's channel inventory level has now dropped to 0.5 months, indicating a sales rebound in the second half of the year.

Morgan Stanley expects that CHINA FEIHE's sales and profit growth rates for the second half of the year will be 10% and 18% year-on-year, respectively, with an expected annual sales growth of 0.5% for the full year. Adjusted profits are expected to decline by 14.6%, and the bank anticipates a compound annual growth rate for sales and profits of 3.8% and 13.1%, respectively, from 2025 to 2027. The bank has lowered the company's target price from HKD 7.1 to HKD 6, maintaining a "buy" rating to reflect the recovery of the infant formula (IMF) business

### Related Stocks

- [06186.HK - CHINA FEIHE](https://longbridge.com/en/quote/06186.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.