• Jadason posted a 2Q18 net loss of S$0.4m, below our expectations.
• Although the gross profit margin improved to 22.4%, the 7% revenue decline led to lower profitability.
• Excluding an exchange loss of S$0.6m, adjusted net profit was S$0.1m.
• The company has guided for a challenging 2H given trade tensions between the US and China, which affect Jadason’s end customers.
• We value Jadason at an unchanged 1.0x CY18 P/BV but lower our target price to 7.3 Scts due to earnings cuts.

Source: CGS-CIMB Research - 16 Aug 2018