SINGAPORE (Nov 16): Daiwa is maintaining its “underperform” call on Super Group but raising its target price to 76 cents from 73 cents as 3Q results came in below forecasts and new product launches will take time to build traction.

Super Group reported a 25.6% decline in its 3Q15 PATMI to $7.4 million from a year ago, on the back of a 1pp decline in the operating margin and a 6.6% decrease in revenue.

Meanwhile, the 3Q15 operating margin, which was below our forecast, was dragged down by higher-than-expected distribution and selling expenses, due to more promotions.

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