Prod-Art stocks take dive
CAUTION over the Chinese economy's outlook saw pager manufacturer and retailer Prod-Art Technology's shares plummet more than 80 per cent this year.
The stock finished at 55 cents yesterday, down $2.294 when compared with its price of $2.844 on January 3, according to information provided by Investamatic (HK).
It has underperformed the Hang Seng Index by 67.33 per cent this year.
Although the telecommunications market has shown some recovery recently, investors are not satisfied with the pace.
Concerns over turnover growth still weighed on the minds of investors because China showed no sign of relaxing its tight monetary policy or bringing inflation under control.
Last year, China accounted for 68 per cent of the firm's revenue.
Prod-Art's dependence on organisations under the Chinese Ministry of Posts and Telecommunications for generating sales turned from a major strength into a weakness under the prolonged austerity measures.
Some traders said the counter was too risky, regardless of an undemanding price-earnings multiple.
In addition, investors are cautious over whether a new range of Prod-Art pagers and telephones that have been introduced into China will be well received.