China: Nomura keeps ‘buy’ rating on Kingway Brewery

Nomura keeps buy rating on Kingway Brewery, but cuts estimated FY06, FY07 net income, Dow Jones Newswires communicated on April 25. Nomura expects decline in average selling prices of beer, higher cost of packaging materials.

Forecasts FY06 net income of HK$220.7 million vs previous estimate of HK$242.8 million; projects FY07 net profit of HK$274.2 million vs previous estimate of HK$306.4 million. Adds, stock risks include "more severe price decrease for Kingway's product than we expect". Keep fair value estimate of HK$3.72. Stock down 0.8% at HK$3.25.

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