[ET Net News Agency, 14 November 2017] HSBC Global Research raised its target price for
Tingyi (Cayman Islands) Holdings (00322) to HK$12 from HK$9.3 reflecting the 10-20% hikes
in its 2017-19 earnings estimates and higher long-term margin assumptions. HSBC maintained
its "hold" rating.
The research house said Tingyi's 3Q results were 18% higher than its expectation, mainly
due to better-than-expected beverage sales and lower-than-expected distribution and
finance costs.
Tingyi plans to adopt an asset-light strategy by disposing of existing factories to OEM
partners to reduce its exposure in manufacturing. Tingyi had also reduced its staff by 10%
year to date, and HSBC believes there is still room for Tingyi to further streamline its
operations.
While margins should benefit from better efficiency and cost reduction efforts, HSBC is
concerned with the continuous market share loss in ready-to-drink (RTD) tea and bottled
water. (KL)
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00322 TINGYI
Nominal 
8.590 0.000 (0.000%) Others
14/11/2017 17:10
[I-bank focus]HSBC raises Tingyi (00322) to HK$12; "hold"
| Remark: | Real time quote last updated: 25/04/2024 07:57 |
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