[ET Net News Agency, 21 June 2019] Daiwa Research lowered its target price for Pacific
Textiles Holdings (01382) to HK$8.1 from HK$9.3 and maintained its "buy" rating.
The research house said Pacific Textiles' FY2019 results missed Daiwa's estimate by 6-8%
(top line and bottom line), mainly due to fewer UNIQLO Heattech orders due to a warmer
winter in Japan.
Management expects FY2020 to be a challenging year due to the US-China trade war
uncertainty and guided for revenue and net profit to be largely similar to that of FY2019.
However, on the positive side, the dividend payout ratio remained above (or near) 90% for
the seventh year in a row, and Daiwa expects the stock to continue to be supported by its
9%-plus yield, which is among the highest in the recent years.
Daiwa cut its FY2020-21 EPS forecasts by 6-7% on lower topline growth estimates. (KL)