[ET Net News Agency, 29 August 2018] Credit Suisse raised its target price for Tingyi
(Cayman Islands)(00322) to HK$18.2 from HK$17, and maintained its "neurtal" rating,
considering lack of meaningful positive catalysts ahead.
The research house said Tingyi's 1H results beat its expectations.
Credit Suisse applaud Tingyi's strategies of: (1) price lift, (2) delayering of the
organisational structure, and (3) continued disposal of idle capacity, which supports a
strong rebound in 1H.
However, it remains cautious on 3Q outlook (contributing over 50% of total earnings),
given a potential consumption slowdown and a more stiff competition.
Credit Suisse lifted its earnings forecasts by 8-9% on higher margin assumptions. (KL)