[ET Net News Agency, 17 January 2018] Daiwa Research lowered its target price for Vinda
International (03331) to HK$15.7 from HK$16, and downgraded its rating to "hold" from
"outperform".
The research house cut its gross margin assumptions for 2017-19 by 0.5-1pp to 34.6-35.8%
in light of the increasing wood pulp cost. While Vinda has been able to raise ASPs for
various products in 4Q 2017 (and likely in 1H 2018 as cost hikes continue), Daiwa believes
the gross margin is unlikely to rebound in 2018 due to high-cost inventory.
However, it remains positive on the pace of its tissue paper market share gains and
expansion into other personal care product segments like sanitary napkins. (KL)