[ET Net News Agency, 27 September 2019] Citi Research joined Man Wah Holdings' (01999)
tour to Vietnam after the phase 2 operation kicked off in August.
The research house said key takeaways are (1) the commencement of this phase 2 factory
came in about a quarter earlier-than-expected, (2) Man Wah is the second largest reclining
sofa factory in VN after Ashley, but Man Wah plans to become the largest one there in
coming few years, (3) efficiency in Vietnam plant is 50% to China plant which will reach
80-90% in coming 2-3 years.
Citi expects 1H FY2020 earnings (is scheduled to announce in mid-November) will rise 1%
to HK$670m for robust China sales growth, lower material cost, RMB weakness and property
sales income of Rmb40m in Jiangsu. But the 2H FY2020 earnings would be accelerating to 31%
(HK$915m) for Vietnam factory in place.
Citi maintained its "buy" rating and HK$6.2 target price on Man Wah. (KL)
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01999 MAN WAH HLDGS
Nominal 
5.140 -0.080 (-1.533%) Others
27/09/2019 18:01
{I-bank focus}Man Wah's (01999) 2H2020 earnings seen to soar
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