[ET Net News Agency, 17 January 2020] HSBC Global Research lowered its target price for
Vitasoy International Holdings (00345) to HK$30 from HK$33 and maintained its "hold"
rating.
The research house said the ongoing drought and bushfires in Australia could have a
considerable impact on the farm output, and hence intensifying the raw material shortage
of Vitasoy in Australia and affect its margin.
Despite the near-term pressures, HSBC believes the company holds an unrivaled
competitive position in the soy drink market in mainland China and is firmly positioned to
benefit from the long-term trend towards a healthy, nutritious diet.
HSBC trimmed its profit forecast by 3-8% in FY2020-22 mainly to reflect the unfavorable
climate impact on its Australian business. (KL)