Micro Drop Exchange Textile (01382) Target Price To HK $10 Rating "Buy"

Citigroup issued a research report, the exchange of textiles (01382) target price from 10.5 Hong Kong dollars to 10 Hong Kong dollars, rating "buy", down 2019 to 2021 fiscal year annual profit expectations between 7% to 9%, to reflect the expected decline in profit margins.

The bank saw a 6% increase in earnings as of the end of March this year and 20% in the last half of last September. Under the pessimistic situation, if orders from Uniqlo were further reduced, the annual earnings per share growth slowed to only 5% in the next three years, and the target price for each other was only HK $6.5.

The company pointed out that, with the expected growth of the largest two customers, the management is more optimistic about the orders of Anta (02020) and other international brands. It is estimated that the growth of the 2020 financial year will have a high number of units.