[ET Net News Agency, 24 May 2018] Credit Suisse cut its target price for Truly
International (00732) to HK$2.4 from HK$3.1, and retained its "outperform" rating.
Truly issued profit warning and guided 1Q18 net profit to decline 80% YoY due to 26% YoY
decline in revenue and HK$40mn loss from RMB hedging products.
The research house sees a near-term share price pressure from the disappointing 1Q, but
improving monthly sales, earnings recovery in 2Q will be positive catalysts, while Truly
Optoelectronics' listing will likely be a catalyst in late-3Q.
Credit Suisse cut its 2018/19/20 EPS forecasts by 25%/16%/12% to reflect higher opex and
non-operating impact. (KL)