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Europtronic Group Ltd- By SGX Research Incentive Scheme
Salient points – margin erosion/gearing risk
• Company slipped into a loss of S$2.7m for the third quarter. 1HFY08
performance was a profit of S$0.2m.
• 3Q loss due to :
Decrease in distribution sales as well as impact from Beijing
Olympics;
GPM fell due to higher labour and raw material cost;
Increase in administrative expenses
HOLD; TP: S$0.05
Recommendation - Maintain HOLD
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