Shares in China Shoto fell 33 per cent to 220p after the company warned that profits are 15 per cent down year-on-year in the first five months of 2010.
The back-up battery producer has been hit by cuts to infrastructure investment by China's major telecoms operators and has seen exports come under pressure thanks to the strengthening renminbi.
Broker HB Markets has already pencilled in worst-case pre-tax profits of £11m and EPS of 40.8p, about a quarter lower than previous estimates.
This is a blow given that the price had touched 439p in April, 39 per cent above our tip price (). However, with the shares now trading on a 2010 PE ratio of less than 6 times, the market reaction looks overdone.
When: 19/02/10
Price: 315p
Performance to date: -27%
