Sofa maker Man Wah sinks to 6-month low as earnings dip, broker cuts TP

Man Wah Holdings

16/05/2023 07:08

** Shares of sofa maker Man Wah Holdings Ltd  1999.HK  fall
as much as 6.2% to HK$5.64, their lowest level since Nov. 11 
    ** Stock is the third-biggest pct loser in Hang Seng
Composite Index  .HSCI  
    ** Company says its net profit for fiscal year ended in
March fell 19.8% YoY to HK$1.86 bln ($236.98 mln) with revenue
down 18.4% at HK$17.79 bln  
    ** Daiwa says 2H revenue and net profit both are below
estimates but 1Q FY24 revenue will be growing off a very low
base, resuming positive revenue growth in FY24E
    ** Daiwa maintains "buy" rating on the stock but trims TP to
HK$8.50 from HK$10.50, saying it lowers its earnings forecast to
factor in a weaker-than-expected export business, and it sees
risk from weaker-than-expected recovery in China demand
    ** Both Hang Seng Composite Index  .HSCI  and Hang Seng
Index  .HSI  slip 0.1% 
    ** As of last close, Man Wah shares have fallen 22.7% this
year


($1 = 7.8489 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))