Wumart Stores (08277) to HK$15.26 from HK$15.03, and maintained its "hold" rating.
It said Wumart's earnings climbed 20.3% to Rmb156m, slightly below expectations as
effective tax rate went up 2.3ppt. The house thus lowered its earnings estimates by 3% to
Rmb567m for FY10, and Rmb727m for FY11.
Looking ahead, DBS believes Wumart's centralised procurement and more effective controls
costs to enhance overall profitability. Additionally, Wumart's latest proposal to trade
on the main board should support investment sentiment.