Excerpts from latest analyst reports.....

Mei_diversuitZiwo's VP for investor relations, Leong Yeem Mei, presented the Ziwo story at CIMB yesterday. A key Ziwo product is foamed SBR for making many products ranging from diver suits to mouse pads and laptop bags. Photo: Leong Chan Teik

CIMB reiterates ‘buy’ call on ZIWO, looks to up the target price

Ziwo’s share price has risen steadily of late; a trend we believe is due to a combination of strong recovery in profitability and positive reception for its TDR plan. We see more positives ahead for the stock, and believe that near term stock catalysts could come from

(i) upside to our FY10 forecasts from earlier-than-expected contributions from expanded capacities; and
(ii) premium pricing of its TDR.

We are currently in the process of reviewing the stock’s valuations in view of the recent announcement for new capacity addition.

• Reiterate BUY, TP of S$0.43 (under review).

Net cash per share stands at 70.9 RMB cts (13.9 scts) as at 30 Sep 2010, with total borrowings remaining at zero (since 2Q10).

Ziwo continues to generate healthy cash flows from its business in 2010, with operating cash flows coming in at RMB81.8m for the first nine months of the year.


Recent story: ZIWO: Up 79% since IPO on strong business; headed for TDR listing

 


 


DMG & Partners sets 53-c target for LEADER ENVIRONMENTAL 

Analysts: Tan Chee How & Terence Wong, CFA 

Leader_Env_DMG_2011

Initiating coverage with BUY; TP S$0.53.

Leader Environmental Technologies (LET) tackles pollution in China through manufacturing of desulphurisation systems and dust removal systems, as well as offering wastewater treatment solutions. 

The China-based Industrial Waste Treatment equipment maker is set to grow steadily in the next few years, driven by

1) favourable regulatory policies in China,

2) strong presence in the heavily polluted Northern China, and

3) popular desulphurisation systems.

Backed by expected strong new order wins of RMB400m-RMB450m during FY10F-FY12F, we believe LET is able to achieve PATMI CAGR of 36% in the period. Based on 8.7x FY11F earnings, we are valuing LET at S$0.53.


 

AA_plant
Sunvic's AA plant in Yancheng, Jiangsu province. Photo: Sunvic



AmFraser sets $1.02 target for SUNVIC CHEMICAL 

Analyst: Winston Peak

We initiate coverage on Sunvic Chemical Holdings Ltd with a BUY recommendation and fair value of S$1.02. This represents a 55% premium over the last close price of S$0.66. After studying their listed peers on the SGX and HKEx, we peg a 6x P/E valuation on their FY2010E earnings of S$0.17 (exchange rate of RMB1:SGD0.195) to arrive at our FV.

GROWTH PROSPECTS

1. Venturing upstream into Propylene. Since propylene prices have a big impact on Sunvic’s gross margins, it makes sense for the Group to move upstream to secure their raw material. Sunvic’s new cracking plant producing propylene and other petrochemical products is expected to be operational by end Q1FY2011.

2. New AA plant in 2012. To meet surging demand, Sunvic started construction of a new AA plant with total production capacity of 320,000 tonnes per annum. It will be completed in two phases with the first phase of 160,000 tonnes expected to begin commercial production in 2012.

Sunvic_AmFraser11Revenue, EBITDA and profit figures in '000.


Recent story: Hot stocks on first day of trading: JUKEN, XINREN, CHINA GAOXIAN, SUNVIC, ROXY-PACIFIC

 


 

SIAS Research pegs TECHNICS' intrinsic value at $1.17

Analyst: Ng Kian Teck  

robin_office2
Robin Ting, exec chairman of Technics Oil & Gas. Photo: Leong Chan Teik

Technics Oil & Gas Limited (Technics) announced two positive developments yesterday (03 January 2011).

Firstly, the company has received approval from the Securities and Futures Bureau of Taiwan Financial Supervisory Commission, Executive Yuan for the offering and listing of up to 80m TDRs on the Gretai Securities Market of Taiwan.

Secondly, Technics has secured a S$23.5m EPCC contract from Middle East Oil & Gas Company. In view of these two announcements, particularly the latest contract win, we are upgrading Technics’ intrinsic value to S$1.17 per share (27.2% upside). Maintain Increase Exposure.

Technics’ quality products and timely delivery have won the trust of many clients – which can be demonstrated by the S$84.1m contracts secured by the company and its subsidiaries over the last four months. We estimate the company to secure about S$120m of new orders in FY2011F.


Recent story: TECHNICS receives TDR listing approval, announces $23.5 m contract win
 

 


Share Prices

Counter NameLastChange
AEM Holdings3.9100.020
Avarga0.335-
Avi-Tech Electronics0.460-
Best World Int.1.360-
CEI1.140-
China Sunsine0.4900.005
CNMC GoldMine0.275-
CSE Global0.485-
Food Empire0.7500.005
Golden Energy0.168-0.004
GSS Energy0.0590.001
ISDN Holdings0.630-
ISOTeam0.129-
IX Biopharma0.255-
JB Foods0.570-
KSH Holdings0.3650.005
Medtecs Intl1.1200.020
Moya Asia0.073-0.003
Nordic Group0.2450.005
Oxley Holdings0.230-0.010
Procurri0.290-
REX International0.156-0.001
Riverstone1.5000.010
Roxy-Pacific0.3550.005
SingMedical0.335-0.005
Sri Trang Agro1.2800.010
Straco Corp.0.5800.005
Sunningdale Tech1.5600.020
Sunpower Group0.945-0.030
The Trendlines0.096-
UG Healthcare0.7200.005
Uni-Asia Group0.600-0.010
Yangzijiang Shipbldg1.070-

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 405 guests and no members online