[ET Net News Agency, 5 September 2018] HSBC Global Research maintained its target price
for Pacific Textiles (PT)(01382) unchanged at HK$7.4, but upgraded its rating to "buy"
from "hold".
The research house said Pacific Textiles was plagued by internal and external factors in
FY2018. First, the suspension of Vietnam factory has hurt utilisation, leading to
operation deleveraging. Second, RMB appreciation has inflated costs, especially in 2H
FY2018. Last, profitability was hurt by customer claims due to temporary production
migration.
However, Pacific Textiles now trades at a 30% discount to peers at 10x FY2019 PE, with a
8% dividend yield, HSBC thinks a re-rating is due, with fundamentals set to improve in
FY2019. (KL)
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01382 PACIFICTEXTILES
Nominal 
1.410 -0.010 (-0.704%) Others
06/09/2018 14:36
[I-bank focus]HSBC lifts Pacific Textiles (01382) to "buy"
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