China Modern Dairy hits 2-week high as Daiwa ups target price

China Modern Dairy Holdings

27/03/2019 05:41

** Shares of raw milk producer China Modern Dairy Holdings
Ltd  1117.HK  rise as much as 9.3 pct to HK$1.17, their highest
since March 13
    ** Daiwa maintains "buy" on the stock, saying the firm's
bottom line is set to turn around in 2019 with significant
improvement in free cash flow 
    ** It raises China Modern Dairy's target price to HK$1.65
from HK$1.45 on better cash flow outlook
    ** Daiwa also says China Modern Dairy's synergy with parent
China Mengniu Dairy  2319.HK  will help reduce costs and boost
revenue growth    
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
climbs 0.6 pct, the Hang Seng China enterprises index  .HSCE 
gains 0.7 pct, and the bemchmark index  .HSI  gains 0.5 pct
    ** As of last close, the stock had risen 37.2 pct so far
this year
    ** China Modern Dairy has underperformed the Hang Seng
Commerce & Industry Index sector  .HSNC  by 7.6 percentage
points in the past one month

 ((Reuters Messaging:
donny.kwok.thomsonreuters.com@reuters.net))