[ET Net News Agency, 15 August 2019] Daiwa Research cut its target price for Ausnutria
Dairy (01717) to HK$18 from HK$18.4 and maintained its "buy" rating.
The research house hosted a post-results NDR with Ausnutria's management yesterday.
Management provided 2H revenue growth targets of 35-40% for goat IMF (infant milk formula)
and 30-35% for cow IMF. They expect gross margin to fall slightly HoH due to the launch of
some new SKUs (stock keeping unit) in the IMF segment and a revenue recovery in the
private label business.
Daiwa cut its 2019-20 revenue and EPS forecasts by 3-4% and 2-4% to factor in lower
sales of non-branded businesses. (KL)