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Daiwa Cuts Lorenzo International Target To S$0.09

what a target price cut..

hnfreedom      ( Date: 06-Oct-2008 11:39) Posted: 0118 GMT [Dow Jones] STOCK CALL: Daiwa maintains Lorenzo International (5IE.SG) at Outperform. Notes Lorenzo sells furniture into Asia-Pacific region, which has had relatively strong economic growth compared to U.S., Europe. "Both sofa and 'other furniture' segments' revenue rose on a year-on-year basis. Sales through the retail and LRS channels also increased year-on-year." Still, cuts target price to S$0.09 from S$0.305. Expects slower sales growth for 2H08, due to manufacturing-capacity constraints. "The downward revisions are due to the relatively thin operating-profit margins." Lowers earnings forecasts by 45.2%, 61.3% for 2008, 2009, respectively, due partly to higher expenses associated with higher cost assumption for Qiao write-offs, sales-network expansion. Shares last flat at S$0.08. (PVA)

 

0118 GMT [Dow Jones] STOCK CALL: Daiwa maintains Lorenzo International (5IE.SG) at Outperform. Notes Lorenzo sells furniture into Asia-Pacific region, which has had relatively strong economic growth compared to U.S., Europe. "Both sofa and 'other furniture' segments' revenue rose on a year-on-year basis. Sales through the retail and LRS channels also increased year-on-year." Still, cuts target price to S$0.09 from S$0.305. Expects slower sales growth for 2H08, due to manufacturing-capacity constraints. "The downward revisions are due to the relatively thin operating-profit margins." Lowers earnings forecasts by 45.2%, 61.3% for 2008, 2009, respectively, due partly to higher expenses associated with higher cost assumption for Qiao write-offs, sales-network expansion. Shares last flat at S$0.08. (PVA)