China's Meitu falls to all-time low on H1 loss, weak outlook

Meitu

22/08/2018 03:11

** Shares of Meitu Inc  1357.HK  fall 16 pct to HK$4.05,
their all-time low since listing in December 2016, after the
internet service provider and smart hardware developer warns of
difficult market conditions persisting in H2 
    ** The stock tops the biggest percentage loser in early
trade and is heading for the worst day since March 27, 2017 
    ** Co says H1 net loss narrows 3.4 pct to 127.4 million yuan
($18.5 million) with revenue declining 5.9 pct  urn:newsml:reuters.com:*:nFWN1VC05X
    ** Co expects market condition for smartphone and related
hardware business to remain challenging in H2, while it will
"de-emphasise" net profit generation until it completes its
transformation into a scalable social media platform
    ** As of the previous close, the stock has fallen 55.7
percent so far this year
    ** Meitu has underperformed the Hang Seng Commerce &
Industry Index sector  .HSNC  by 21.7 percentage points in the
past month
    ** About 14.76 million shares of the Fujian-based company
have been traded, compared with their 30-day moving average of
8.17 million shares a day
    ** Among the 8 analysts that cover Meitu, the current
average rating on the shares is "hold"; the breakdown of
recommendations is three "strong buy" or "buy", four "hold" and
one "sell" or "strong sell". The mean price target is HK$11.07
    ** Hong Kong benchmark index  .HSI  falls 0.5 pct
   ($1 = 6.8740 Chinese yuan)

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