FJ Benjamin

FJ Benjamin: Grp recorded a 12% downturn in 2Q13 rev to $97.9m, while net profit plunged 75% to $1.1m. Excluding an exceptional gain on sale of an office unit, net profit would have plunged 95% to $0.2m. Weak results was due to a decline in spending by PRC visitors for luxury timepieces in HK and China which persisted from a lackluster performance during Golden Week, this resulted in a 36% drop in North Asia sales. Grp expect weakness in North Asia sales to persist in the second half and will continue to drag on earnings. With no strong catalysts in sight, Maybank-LE downgrade to SELL with $0.195 TP.