Written by The Edge
Tuesday, 03 August 2010 11:04
Synear Food (Z75.SG) off 1.9% at $0.26 on 2Q10 profit fall, management’s warning of challenging business conditions in coming year, according to Dow Jones.
Earnings down 10.6% on year at RMB41.1 million ($8.2 million) as increased operating expenses offset modest revenue growth. China-based frozen food maker’s guidance hardly changed from 1Q10’s, with company still deferring commencement of operations at its new Guangzhou plant until market conditions turn favourable.
“2Q10 results came (in) below our expectations and consensus’,” says Deutsche Bank, which has Hold call with $0.28 target; notes, higher sales came at expense of intensive market strategy, which drove up selling & distribution costs by 21.5% to RMB60.1 million. Immediate support at $0.255, in place since July 20.
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