SINGAPORE (May 13): DBS Group Research is maintaining its “hold” call on Fu Yu Corp with a target price of 21 cents.

In a Wednesday report, analyst Ling Lee Keng says, “We continue to expect FY20 to be weak on the back of the pandemic affecting manufacturing activity and a weakened economic outlook. While we do not expect core earnings to return to pre-Covid-19 levels in FY21, a bright spot could be the potential bottoming of core earnings in 1H20.”

Yesterday, Fu Yu announced its business update for 1Q20 and recorded a 25.5% drop in its 1Q20 revenue to $34.8 million from $46.7 million a year ago, due mainly to decreased sales from its manufacturing operations in Singapore and Malaysia, and particularly in China where the Group’s factories had to remain closed following the Chinese New Year holidays.

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