by winston » Thu Jul 24, 2014 8:08 am
not vested
LINGBAO GOLD (03330.HK) rated Underperform, TP reduced to $1 - CS
2013-09-03
Credit Suisse noted in a report that after deducting the one-off losses from inventories write-down and provision for Impairment of goodwill, LINGBAO GOLD (03330.HK)'s interim loss of RMB189 million was out of expectation.
During the period, gold mine production dropped 21% year-on-year to 1.3 tons, 33% below estimate. Consequently, the broker slash the full-year gold output forecast by 1 ton to 3.3 tons.
The broker predicted that the company's gold mines are close to break even, while the debt ratio rose to nearly 200%, bring pressure to the company's profit and valuation.
In order to reflect the low book value, the broker lowered the target price from $1.1 to $1, with PB ratio estimate staying at 0.3x. The Underperform rating remains unchanged.
Source: AAStocks Financial News
It's all about "how much you made when you were right" & "how little you lost when you were wrong"