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DJ MARKET TALK: Sateri Down; Forex, Natural Hazard Risks Eyed-BEA
1502 [Dow Jones] NEW LISTING: Sateri (1768.HK) is down 0.9% at HK$6.54, vs IPO price of HK$6.60, with the stock moving in tight range of HK$6.48-HK$6.66, after a lackluster response to its IPO, with HK's retail tranche only 64% subscribed.
BEA Securities says Sateri is exposed to the foreign exchange risk of the Brazilian Real vs USD.
"The Group has been using forward foreign exchange contracts to hedge against FX risks, which led to hedging gains and losses during the track record period."
Adds, its wood plantation assets are exposed to natural hazard risks like fire, flood, severe weather and unknown disease, which could hamper its earnings growth. Suggests that investors take quick profits.
Source: Dow Jones Newswire