Dahua Jixian estimates that Hendley (3389.HK)'s revenue for the first half of fiscal year 2012 increased 11% year-on-year to RMB 6 billion, net profit fell 4% to RMB 430 million, and gross margin fell slightly to 25.1%, reflecting the small impact of the increase in sales prices of its watch brands under weak consumer sentiment; the net profit forecast for the 12-14 fiscal year was reduced by 1%/8%/14% to reflect the impact of the slowdown in sales growth; the stock was rated at HK$2.1, with a recommended entry price of HK$1.8.

Hendry will announce results on August 21.