DMG downgrades Ying Li International (5DM.SG) to Sell from Neutral, cuts target price to $0.33 from $0.42 based on 50% discount to RNAV estimate, says Dow Jones.

“We think Ying Li’s uncertain earnings visibility will cap share price upside,” says DMG.

Research house notes China-based property developer’s 2Q10 RMB21.4 million ($4.3 million) net loss, due to higher admin and interest costs, lower revenue contributions from property sales.

DMG flags project delay as risk to bottomline improvement, with Ying Li postponing launch of residential component of its Da Ping project to 2H11 from 2H10 on yet-to-be finalised designs, expected higher capital values in FY11.

Shares flat at $0.405.