[ET Net News Agency, 22 January 2020] UBS Global Research initiated coverage on Man Wah
Holdings (01999) with a "buy" rating and a target price of HK$8.1.
The research house said, as of FY2019 (year ending 31 March), 37% of Man Wah's revenue
was from exports to the US. To counter the higher US tariffs, the company relocated some
production to Vietnam in June 2018. Vietnam's capacity can already cover about 90% of its
US orders.
UBS said Man Wah's balance sheet has remained solid, with net gearing at 41% and
HK$1.6bn of cash on hand, as of 1H FY2020. The stock is trading at 13x FY2021 PE, a 25%
discount to the pre-trade war level (ie, March 2018). UBS expects its net profit to
recover to the FY2018 level in FY2020 and then grow 28%/17% in FY2021/22. (KL)
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01999 MAN WAH HLDGS
Nominal 
5.450 +0.080 (+1.490%) Others
22/01/2020 17:34
{I-bank focus}UBS starts Man Wah Holdings (01999) at HK$8.1
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