Proya, a Chinese consumer staples company, is relatively less impacted by recent lockdowns in Shanghai and Beijing, according to CMB International Global Markets. The company has warehouse spreading across Hangzhou, Chengdu, Guangzhou and 85% of sales deriving from ecommerce platforms. Despite the expense related to the recall for its sunblocker, Proya is expected to deliver a 2Q that is inline with its full year guidance, with a solid 618 sales momentum and a more controlled promotional expense. The company's hero product strategy, deepening ecommerce platforms penetration, and proprietary R&D capability are expected to drive long-term growth. CMB International Global Markets rates Proya as a BUY with a target price of RMB184.
