[ET Net News Agency, 15 June 2018] Goldman Sachs lowered its target price for Zhou Hei
Ya International (ZHY)(01458) to HK$7.5 from HK$9.4, and downgraded its rating to
"neutral" from "buy" on the back of lower store productivity from competition and negative
operating leverage.
The research house believes tougher competition from greater snack varieties and the
rapid expansion of peers coupled with ZHY's limited, single-category focus could lead to
slower sales momentum and negative operating leverage.
Goldman also lowered its 2018-20 EPS forecasts by 13%/18%/19%, respectively, to account
for slower sales growth and subsequently negative operating leverage. (KL)