Pft Warning,ICEA Cuts To Sell
still well above 52-week low of 85 HK cents set Oct. 28, after news company expects to record 2008 net profit considerably lower vs 2007, due to surge in raw material costs, rising labor costs and CNY rise.
ICEA downgrades stock to Sell from Buy, cuts target to HK$1.30 from HK$1.47, equal to 5X 2009 P/E.
"As the global economic recession is yet to bottom, we believe its profitability will not return to normal in 2009," says ICEA.
Cuts 2008-09 earnings estimates by 50%, 57%, respectively; tips 2008 net profit down 44.0% on-year at HK$187 million, while 2009 net profit to rise 4.7% to HK$196 million.
still well above 52-week low of 85 HK cents set Oct. 28, after news company expects to record 2008 net profit considerably lower vs 2007, due to surge in raw material costs, rising labor costs and CNY rise.
ICEA downgrades stock to Sell from Buy, cuts target to HK$1.30 from HK$1.47, equal to 5X 2009 P/E.
"As the global economic recession is yet to bottom, we believe its profitability will not return to normal in 2009," says ICEA.
Cuts 2008-09 earnings estimates by 50%, 57%, respectively; tips 2008 net profit down 44.0% on-year at HK$187 million, while 2009 net profit to rise 4.7% to HK$196 million.
