Citi Research lowered its target price for Luk Fook Holdings (00590) to HK$22.9 from HK$27.1 and maintained its "buy" rating.
The research house adjusted its FY2020/21/22 SSSG forecast to -23%/0%/0% (from -15%/0%/0%) for HK & Macau and to -2%/0%/0% (from 5%/1%/1%) for Mainland China, and hence revised down its net profit forecasts by 15%/15%/16%.
Citi said the new target price implies 11x FY2020 P/E, versus the 3-year average of 11x and 3-year low 7.4x.