Risk of sales target to be cut
• 1H22 net earnings plunged 50% y-o-y on rising input costs
• 2Q sales drop was expected; GP contracted to 2016’s level • Cut earnings by 13%-29% on lower GP assumptions
• Maintain SELL and new TP of HK$4.2 based on low end of the historical range P/B multiple of 0.5x
