[ET Net News Agency, 23 August 2019] HSBC Global Research lowered its target price for
Colour Life Services (01778) to HK$4 from HK$4.9 and maintained its "hold" rating.
The research house said Colour life reported a subdued set of 1H results with modest
top-line growth of +3%. While headline core profit growth of 26% appears more
constructive, HSBC noted that this is predominantly driven by lower finance cost.
HSBC is cautious on the company and said Colour Life compares less favourably to peers
such as A-living (03319) which delivered strong earnings growth of 63%. HSBC cut its core
profit forecast by 9%/8% in FY2019/20. (KL)