Anticipating a solid recovery next yearAffected by the lockdown in Mainland China in 1H22, a number of premium and luxury brand events have been put on hold or postponed. However, Activation has successfully engaged in over 100 new projects in the 2H22, with various operating indicators recovering and improving in an orderly manner. According to the management, its business has resumed to normal in July 2022, as compared with the same month in 2021. We have lowered our forecasts on the company for 2022&23E to reflect changes in business outlook and the macroeconomic environment. We reiterate our BUY rating with a revised TP of HK$2.01 based on a 12x 2023E P/E, implying 105% upside potential. Business in 1H22 was severely affected by the lockdown: 1H22 results were hit by various negati

Guosheng Securities issued a research report on Activation Group (9919.HK) at “Buy” with a target price of HK$2.8, on a net profit assumption of RMB 67/153/190 million from 2022-2024. The report highlights that, given multiple international premium brands have increased their investment in the PRC, along with the rising influence of domestic brands, Activation Group could be one of the key beneficiaries with its established long-term relationships with premium brands. Backed by an experienced team, a solid customer base, as well as its comprehensive online and offline marketing strategies, Guosheng Securities believes thepan-fashion interactive data performance marketing grouphas a clear differentiation from its peers especially in premium and luxury brands marketing. On the backdrop of di