HL Asia

HL Asia hit by some broker downgrades due to more challenging prospects for China units Xinfei and Yuchai; expect rising raw material costs and rising inventory levels at the distributors to erode margins of Yuchai and Xinfei for the rest of the year as demand is projected to slow amid credit tightening and a weaker property market in China. Stock is still in a downleg, $3.26 would be better entry level.