FY24 revenue guidance miss; ASP and gross margin would take longer to recover
- 4Q23 net profit fell 55% y-o-y due to persistent ASP pressure and slow de-stocking of clients’ inventories
- Management guides for a dim FY24 revenue guidance of mid-single-digit growth, vs. market expectations of 18%
- Earnings forecast cut by 59%/38% for FY24F/FY25F to account for lower gross margins and a prolonged top-line recovery
- Downgrade to HOLD with a lower TP of HK$17.0 due to a slower-than-expected recovery profile in the near term