HL Asia: CIMB downgrades to Underperform from Outperform, cuts target to $3.21 from $4.86, valuing China consumer electronics unit Xinfei at 10X FY11 P/E vs 16X FY10 P/E previously, to account for slower growth. Notes 2Q10 earnings of Xinfei down despite June quarter being its seasonally strongest quarter, hurt by weaker margins stemming from higher raw material costs, trade discounts offered to counter competition…
Says 2Q10 performance of diesel engines unit Yuchai hurt by higher selling & distribution costs. Shares off 4.0% at $3.56 with support at $3.50.
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