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DJ MARKET TALK: Vinda Down 1.8%; Horizontal Business Expansion
1538 [Dow Jones] Vinda International (3331.HK) is down 1.8% at HK$8.26 on modest volume, mostly ignoring the announcement that it is setting up a JV for a disposable diapers and sanitary napkin business; the JV is owned by Vinda (41%), a substantial shareholder (39%) and 2 private equity funds.
"We view this to be positive for the company's long-term development given that it will gradually diversify its single products risk," says Kim Eng.
The house adds, Vinda's financial strength is sufficient, with a healthy balance sheet; the company raised HK$264 million from a share placement in late September. KE has a Buy rating with a HK$10.08 target. Hengan International (1044.HK) is not feeling much of a threat, for now; the stock is down 0.5% at HK$66.85.
Source: Dow Jones Newswire