[ET Net News Agency, 20 June 2019] Morgan Stanley initiated coverage on Yangtze Optical
Fibre and Cable (YOFC)(06869) with an "equal-weight" rating and a target price of HK$16.
The research house believes YOFC's revenue and earnings will be under pressure in the
near term, affected by a sluggish demand outlook and intensifying competition among
suppliers.
The fiber price almost halved in the first quarter of 2019, and Morgan does not expect
it to stabilize before 2H 2020. It said YOFC is more vulnerable to the cyclical impact of
the optical fiber industry because of the company's higher exposure and lack of support
from other business segments.
Yet the company is already trading toward the lower end of its historical P/E range
since its listing in 2014, following the market de-rating after March 2019. Hence, the
current share price has largely baked in the weak outlook of optical fiber demand in 2019
and 2020. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
06869 YOFC
Nominal 
9.270 +0.310 (+3.460%) Research Report
20/06/2019 17:48
[I-bank focus]Morgan rates YOFC "equal-weight" and HK$16
| Remark: | Real time quote last updated: 26/04/2024 18:00 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |