Better recovery ahead despite lingering competition
- FY22 net loss of RMB0.83bn in line with profit warning
- Expect 7%/6% revenue growth in FY23/FY24 with better offline sales recovery, while B2C business should continue to grow at double-digit rates
- Efficiency improvement also supports margin recovery
- In view of its undemanding valuation, we upgrade from HOLD to BUY with new TP of HK$2.94