Positive profit alert indicates a very strong
■ Texhong Textile (Texhong) issued a positive profit alert that the Company’s net profit exceeded Rmb1bn in Jan–May2021.
■ We originally expected a significant recovery in 1H21, but the actual increase was much stronger than we expected
■ We will revise our forecasts after discussion with management. We still like
Texhong because of its vertical integration and geographical coverage.