HTL Intl: 3Q results came in with rev at $154.8m, +3.9%yoy, -5.6%qoq. Net profit was 1.4m, -66.9% yoy, -84.5%qoq. The big fall in net profit was due to forex losses, a total of $4.8m. However even, excluding forex losses, net profit at $6.2m would be still -35.9%yoy, -27.7%qoq….
Growth in rev came from mainly Aus and US in sofa sales, but sales from its biggest mkt Europe was tempered by the Euro remaining weak. Mgmt has cited sovereign worries of PIIGS and US economic woes as reasons for uncertain prospects. EPS is at 0.34c compared to 1.91c in 2Q10 due to the forex loss….
Given that Europe makes up approx 60% of their Sofa mkt and US 2nd largest, they are susceptible to both EUR and SGD weakening against the SGD (reporting ccy). Analysts TP range from $0.73-$0.85 with Buy and Hold, last done price was at $0.70.
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