[ET Net News Agency, 17 August 2018] HSBC Global Research lowered its target price for
Crystal International (02232) to HK$5.7 from HK$6, and maintained its "hold" rating.
The research house said 1H net profit of US$71m was largely in line with its forecast.
While the net margin declined by 0.9ppts yoy, it should not be a surprise given that it
included 80bps of negative impact from the RMB's appreciation, HSBC noted.
Looking ahead, HSBC expects demand to remain robust in 2H. However, in terms of margins,
while the RMB's depreciation is helpful for a margin recovery, the company encountered
staff shortages in China, which will be sustained in the near future.
Facing higher trade tensions but with more overseas capacity in Vietnam and Bangladesh,
Crystal should enjoy the flexibility of adjusting its production base.
HSBC lowered its FY2019-20 earnings estimates by 4-5% mainly to factor in higher
interest costs and product mix changes as reflected in the 1H results. (KL)
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02232 CRYSTAL INTL
Nominal 
3.450 0.000 (0.000%) Others
17/08/2018 15:54
[I-bank focus]HSBC cuts Crystal Int'l (02232) to HK$5.7
| Remark: | Real time quote last updated: 20/09/2024 08:07 |
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