Karin Tech

Karin Tech: Reported a 35.3% YoY surge in rev to HK$1,712.9m and a 22.0% jump in PATMI to HK$36.9m for 2HFY12. After adjusting for exceptional items, core net profit would instead have declined 12.1% YoY to HK$21.4m, which was below expectations. Looking ahead, OCBC believe that Karin’s Consumer Electronics Products segment would remain as its main revenue driver given its license to sell the full range of Apple products at its retail stores. House raise FY13 revenue forecast by 6.9% but lower core net profit estimate by 7.6% on lower margin assumptions. Maintain HOLD, with a lower fair value estimate of $0.25 (previously $0.265).