[ET Net News Agency, 7 July 2020] Huatai Research tweaked its target price for Modern
Dairy (CMD)(01117) to HK$1.8 from HK$1.78 and maintained its "buy" rating.
The research house said CMD issued a positive profit warning on 5 July. Huatai believes
CMD will benefit from moderate price hikes for raw milk and lower unit expenses (including
feed cost and financial expenses) in the future, and these will translate into steady free
cash flow improvement.
Huatai raised its net profit forecasts by 12/3% in 2020/21 to factor in the stronger 1H
earnings, per announcement. (KL)