VTSYF - Vitasoy International: Still Expensive
Elevator Pitch
I maintain my "Neutral" rating on Hong Kong-listed beverage company Vitasoy International Holdings Limited (OTCPK:VTSYF) [345:HK]. Vitasoy International issued a profit warning on March 27, 2020 guiding for a 25%-35% decline in net profit for FY2020 (YE March) as a result of the coronavirus outbreak. Vitasoy International's earnings are expected to decline by a greater extent compared with its revenue, due to negative operating leverage, and higher marketing & transportation expenses.
Even with the recent share price correction, Vitasoy International remain expensive on a P/E basis. A "Neutral" rating for Vitasoy