[ET Net News Agency, 26 February 2021] Citi Research lifted its target price for Man
Wah Holdings (01999) to HK$19 from HK$16.5 but downgraded its rating to "neutral" from
"buy".
The research house trimmed its FY2021-23 earnings estimates by 2% to reflect the
mounting freight cost and material cost pressure. Citi noted that Man Wah will likely
raise ASP by 5% from March for both China and overseas markets but Citi sees it would take
longer to pass on the cost inflation owing to its long sales cycle of 3-6 months.
Citi said the share price rally of 230% over the past 12 months have priced in (1)
stronger share win in China after COVID-10, (2) removal of tariff impact between US and
China after plant relocation to Vietnam, and (3) rise of dividend payout ratio on the back
of lower gearing after heavy investment in Vietnam. (KL)
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01999 MAN WAH HLDGS
Nominal 
5.370 +0.040 (+0.750%) Others
26/02/2021 16:00
{I-bank focus}Citi lifts Man Wah Holdings (01999) to HK$19
| Remark: | Real time quote last updated: 24/04/2024 17:59 |
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