Narcissus profits gloom

BROKERAGE James Capel Asia has cut its 1996 profit forecast for Shanghai Narcissus Electric Appliances Industrial Co by 22 per cent to 42 million yuan (about HK$39.06 million).

The brokerage reduced China's second-largest washing machine maker's 1995 profit estimate by 34 per cent to 35 million yuan and its sales estimate 17 per cent to 826 million yuan.

James Capel China analyst Elizabeth Cheng said Narcissus sales fell by half during the third quarter of 1995 as consumers snubbed the firm's new fully automatic model and switched to foreign brands.

Sales could improve if Narcissus decided to merge production lines with joint-venture partner Whirlpool Corp, of the US, Ms Cheng said.