[ET Net News Agency, 30 January 2018] BofA Merrill Lynch lifted its target price for
Vinda International (03331) to HK$16.3 from HK$16, and maintained its "neutral" rating.
The research house lowered its 2018 EPS by 6% post Vinda's 2017 earnings miss. While
the ongoing cost pressure could continue to weigh on earnings in coming quarters, BofAML
believes its market share gain, price hikes, mix upgrade and strong eCommerce could
support steady medium-term growth outlook.
It expects Vinda to maintain solid revenue growth ahead (10%+ for China and single digit
for SCA Asia), buoyed by its online strength and share gains. Meanwhile, gross profit
margin could be under pressure in 1H 2018, due to the lagging impact from the rising wood
pulp cost (wood pulp accounts for more than 50% COGS).
Hence, the research house expects EBIT margin to decline in 1H 2018, but to stabilize or
recovery in 2H 2018, barring continued huge rally of pulp cost. (KL)
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03331 VINDA INT'L
Nominal 
23.450 0.000 (0.000%) Others
30/01/2018 14:25
[I-bank focus]BofAML lifts Vinda Int'l (03331) to HK$16.3
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