HTL International (H64.SG) +4.0% at $0.65 on hopes Beijing’s FX policy shift will boost Chinese spending power, rub off on Singapore-based leather sofa maker, which counts China as one of its export markets, according to Dow Jones.

But DBS Vickers, which has Hold call with $0.80 target, says stronger RMB would also be negative for HTL since 30% of its cost is denominated in RMB, with revenue booked in EUR and USD.

“Already having to face the uncertainty of lower demand from Europe (their largest market) due to the current sovereign debt crisis, exports to that region may also be affected by higher product pricing,” says the brokerage house.

Fifty-day moving average, last at $0.70, expected to provide near-term resistance.