Daiwa Securities downgraded China Apparel Holdings (1146.HK) from buy to hold, cutting its target price to HK $1.40 (originally HK $1.90). It believes that weak demand in the mainland market has undermined its profit growth over the next 12 months and lowered its profit forecast for fiscal year 12-14 by 5%. It also points out that the current valuation of the stock is higher than that of other menswear stocks such as 0891.HK and 1234.HK. Chinese clothing, which makes and sells men's clothing, went public at HK $1.64 a share in December.