China Foods 0506

China Foods 0506

Postby winston » Mon Jun 14, 2010 12:00 pm

Not vested.

DJ MARKET TALK:MS Cuts China Foods Target To HK$6.00 From HK$7.00
Jun 3, 2010

1534 [Dow Jones] STOCK CALL: Morgan Stanley cuts China Foods (0506.HK) target price to HK$6.00 from HK$7.00 after lowering FY10-12 EPS forecasts by 7.7%, 11.8%, 18.2% to reflect slower topline growth due to distribution channel restructuring on wine, lower-than-expected carbonated drinks sales earlier this year, continuous margin pressure due to raw material prices.

Lowers 2010 wine sales, beverage sales estimates by 8%, 5% respectively. "While we think the current price has partially factored in the downside pressure, and we expect some recovery in the rest of this year, we suggest that investors wait for a more solid turnaround, which is still not clearly visible at the current point."

Keeps at Equalweight. Says remains positive on long-term prospects on robust demand growth in wine, beverage business; expects faster growth to kick in after 2010.


Source: Dow Jones Newswire
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