[ET Net News Agency, 22 November 2019] J.P. Morgan lowered its target price for Pacific
Textiles (01382) to HK$6.2 from HK$6.9 and maintained its "neutral" rating.
The research house said Pacific Textiles' 1H FY2020 (April-September 2019) results were
slightly below JPM's estimates. The sluggish performance was dragged by
fewer-than-expected orders from Uniqlo, which is heavy on inventory resulting from the
previous warm winter.
Thus, JPM cut its FY2020/21 net profit estimates by 8%/10% as JPM expects sales volume
to remain weak on another expected warm winter this year. But the research house is
positive on Pacific Textiles' co-operation with Toray, and its l0% dividend yield. (KL)