[ET Net News Agency, 12 August 2019] Citi Research lowered its target price for
Kingboard Laminates Holdings (KBL)(01888) to HK$8.5 from HK$11.5 and maintained its "buy"
rating.
The research house said KBL's 1H earnings of HK$1.08bn was below Citi's forecast. Citi
thus reduced its 2019-21 profit forecast by 16-21% owing to worse-than-expected demand for
home appliances, autos & smartphones in China, which constituted more than 75% of total 1H
revenues.
Citi's model suggests 2H earnings to fall 29%, assuming 2H profit to be on par with 1H
rather than a sequential decline. (KL)