[ET Net News Agency, 28 January 2021] HSBC Global Research lifted its target price for
Vinda International (03331) to HK$25.5 from HK$22.7 and maintained its "hold" rating.
The research house said Vinda's 2020 results were in line with HSBC's forecasts.
Vinda's management observed a spike in spot pulp in December and remains uncertain about
where pulp costs will settle, especially in 2H 2021. For 1H 2021, they stocked 6 months of
low-cost pulp inventory. HSBC now assumed Tissue GPM in 1H 2021 remains flat HoH at 37.4%,
or down 2% YoY, but lowers to 34% in 2H 2021 as pulp cost goes up 10%.
HSBC expects Vinda's net profit in 2021 to rise only 12%. (KL)