[ET Net News Agency, 27 August 2018] Citi Research lowered its target price for
Kingboard Laminates (KBL)(01888) to HK$8.1 from HK$13.5 as demand downside will be
mounting over China's slowdown in consumption on de-leveraging and US-CN trade battle, and
maintained its "neutral" rating.
The research house trimmed its 2018-20 earnings estimates by 7-18% due to weaker gross
margin in 1H. Citi said KBL's 1H earnings fell 11% compared with its forecast of down 7%.
But the key negative surprise is reduction of interim payout ratio to 30% in 1H 2018 from
50% in 1H 2017.
Citi reduced its full-year payout ratio to 50%+ in 2018-20 from prior 70%. (KL)