[ET Net News Agency, 9 July 2019] HSBC Global Research lowered its target price for
Fairwood Holdings (00052) to HK$28 from HK$35 and downgraded its rating to "hold" from
"buy" in view of the many uncertainties about its near-term margin and growth outlook.
The research house said Fairwood's FY2019 net profit declined 17% to HK$180m, with 2H
net falling 20% on lower gross profit margin (down 1.3%) and no details were given. HSBC
highlighted this was in contrast to the performance of Cafe de Coral (00341), which
reported a better gross profit margin during the same period.
HSBC said this probably reflects the difficulty facing Fairwood in managing "rising
labour and rental costs". It lowered its profit forecasts by 14% and 18% for FY2020 and
FY2021 to reflect slower revenue growth and higher cost assumptions. (KL)
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00052 FAIRWOOD HOLD
Nominal 
8.030 -0.040 (-0.496%) Research Report
09/07/2019 15:58
[I-bank focus]HSBC downgrades Fairwood (00052) to HK$28
| Remark: | Real time quote last updated: 19/04/2024 18:00 |
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