According to Daiwa, Comdam (0712.HK) has issued a loss warning earlier, blaming it on non-cash book items such as repurchasing convertible bonds and issuing new warrants; it still recorded a gross profit margin of 13% during the period. Daiwa estimates that non-cash losses on bond repurchases will be quite huge, and will greatly weaken cash flow. At the same time, shipments will be drastically reduced, and product prices will drop; the revenue forecast for this year and next two years has been lowered by 33% and 48%. The current rating holdings are currently rated, with a target price of HK$1 for 6 months. Comdance Solar closed at HK$0.89 yesterday.