[ET Net News Agency, 26 March 2020] Daiwa Research lowered its target price for
Goodbaby International (01086) to HK$1 from HK$2.5 and downgraded its rating to "hold"
from "buy".
The research house said hosted a call for investors after Goodbaby's weak 2019 results.
Daiwa views the global outbreak of COVID-19 as yet another unforeseen event that will
further prolong Goodbaby's path to margin recovery. Given the company's continually thin
margins, Daiwa believes it needs to cut costs drastically in order to avoid losses in
2020.
Daiwa sees little chance that absolute debt levels would come down in the current
environment. This also further reduces the timeline for a resumption in dividends (or even
share buybacks). Daiwa cut its 2020-21 EPS forecasts by 23-95% to factor in the COVID-19
impact. (KL)
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01086 GOODBABY INTL
Nominal 
0.660 0.000 (0.000%) Research Report
26/03/2020 14:32
{I-bank focus}Daiwa lowers Goodbaby Int'l (01086) to HK$1
| Remark: | Real time quote last updated: 24/04/2024 08:31 |
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