Morgan Stanley cut its target price for Stella International Holdings (01836) to HK$10.5 from HK$11.5 and maintained its "overweight" rating.
The research house said Stella's 4Q 2020 revenue declined by 18.9% to US$280.1mn. While shipments of fashion sports shoes remained more resilient, Stella saw some recovery in casual and fashion shoes.
Stella noted that it has order visibility for 1H 2021 and it expects footwear orders to grow 10%, with sustained growth from fashion sports along with some rebound in orders for casual and fashion footwear. However, given the lingering Covid-19 situation, especially in the US and Europe, it was unable to provide 2021 full-year order guidance.