Daiwa downgrades China Lifestyle F&B

Daiwa downgrades China Lifestyle Food and Beverage Group to Sell from Hold due to poor 2Q08 revenue growth, expects share price will underperform significantly over next 6 months. Says China Lifestyle's 10.4% on-year increase in 2Q08 jelly dessert revenue "extremely disappointing" since company expanded its manufacturing capacity by 57% with the commissioning of its new plant in Mar '08. House cuts target price to $0.24 from $0.29 on expectation China Lifestyle will trade more in line with other S-chips.