Daiwa Research cut its target price for Peak Sport Products (01968) to HK$2.7 from HK$3.1, and maintained its "buy" rating.
The research house said Peak's top-up placement of 280 million shares resulted in share dilution of 13.3%. It expects this to be short-term negative for the share price.
Daiwa calculated the fee for this top-up placement is about 2% of the gross proceeds (HK$694.4m), which implies management effectively "saved" 3% from the taxes that it would have otherwise paid from the transfer of funds outbound from China.
It believes that Peak's fundamentals remain intact, and expects sustainable double-digit YoY orderbook growth on the back of the sector's structural growth.
全新節目《說說心理話》青少年不可以戀愛！？真實個案講述驚心動魄經歷► 即睇
