 |
|
  |
2009-6-1 04:02:00 p.m. HKT, XFNA
DJ MARKET TALK: CS Tips Downside Risks To Techronic Revenue View
|
| |
| 1548 [Dow Jones] STOCK CALL: Techtronic's (0669.HK) revised guidance for 2009 revenue to fall 5% from previous forecast of flat revenue has downside risk as rivals Black & Decker, Makita are forecasting dismal 20%-50% contraction in sales, Credit Suisse says. "Although Techtronic is confident that its margins will benefit from the new product launches, we are concerned that its rivals will compete on pricing for higher volumes, harming industry margins." Adds, although company's convertible bond issuance improves debt maturity profile, interest expense should rise 22% in 2009, stay high next year, with low conversion price of HK$5.20 set to cause considerable EPS dilution. Cuts FY09-11E EPS by 6%-14% on lower sales assumptions, convertible-bond conversion dilution, but raises target price to HK$5.05 from HK$4.70 on improved financials. Keeps at Neutral. Stock +3.3% at HK$5.96. (JYC) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=u%2BaBWR3MOEq5wdf5XwTy3g%3D%3D. You can use this link on the day this article is published and the following day.
(Delayed by 1 hour)
-0-
Copyright (c) 2009 Dow Jones & Company, Inc. |
| |
News Provided by XFNA |
| |
|
| Copyright(C) AASTOCKS.com Limited 2000. All rights reserved |
| |
|
|
|
