This report provides an equity research analysis on Xinbao Electrical Appliances Holdings (002705 CH). The company's preliminary 2021 results showed revenue and net profit growth of 13.05% and -29.15% YoY, respectively. The analyst adjusted their forecasts and projected the company's 2021E/2022E/2023E EPS at RMB0.96/1.26/1.44. The report also highlights that Morphy Richards regained its advantage online with the launch of new hit products, leading to a sales recovery on mainstream online channels. The analyst values the stock at 21x 2022E PE and maintains a BUY rating with a target price of RMB26.46.
