Shares in animal genetics firm Genus PLC (LSE:GNS) fell 5% in the first hour of trading following a cut in its full-year profit forecast due to difficulties in its Chinese porcine business.
The company warned that it expects the porcine genetics operation in China to be marginally loss-making in the second half.
Although experts anticipate a recovery in the Chinese pork market by summer, Genus stated the timing for a demand upturn in porcine genetics remains uncertain.
Despite the Chinese setback, Genus reported good trading in its porcine business in other regions, with North America, Latin America and Europe registering strong operating profit growth.
The shares ignored the positives to trade 120p lower at 2,448p.
Broker Liberum sees Tuesday's movement as knee-jerk. It reiterated its 'buy' call but downgraded its price tag to a still-punchy 3,950p from 4,200p.
"Conditions in China should eventually improve and with Genus shifting towards a royalty model in China, the risk of this happening again is reducing. The shares have been weak over the last few months so one might argue that this is largely priced in," Liberum said.