Singapore Stock Market News

Eu Yan Sang - Bitter Aftertaste

StockFanatic
Publish date: Fri, 28 Aug 2015, 02:47 PM
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Eu Yan Sang (EYS) reported its first full-year loss of SGD0.6m for FY15 (Jun). We maintain our SELL recommendation with a lower TP of SGD0.36 (14% downside), pegged to 1x FY16F P/BV. Results were significantly below our expectations, mainly due to structural changes in Hong Kong, which has affected sales to parallel traders from Mainland China. While we think earnings have bottomed out, we expect the macroeconomic environment to remain challenging going forward.
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