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