DJ Texhong Textile Shares Likely Already Priced in Most Positives -- Market Talk
0731 GMT - Texhong Textile Group's earnings have improved since 2H 2020, which may mean that most of its businesses are now performing close to pre-pandemic levels, Daiwa Capital says. The textile group's profit margins are also improving after cotton prices recorded one of the strongest 6-month rallies in recent history. However, the uptrend in cotton prices have been slowing since late February, Daiwa notes. It is likely that most of the positives have been priced into Texhong's shares, which are up 95% year to date, Daiwa says. It cuts the stock's rating to outperform from buy and raises target price to HK$15.00 from HK$7.80. Shares are 3.6% lower at HK$12.98. (yiwei.wong@wsj.com)
(END) Dow Jones Newswires
March 19, 2021 03:31 ET (07:31 GMT)
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