C&O Pharm - C&O Pharmaceutical Tech started at Buy by CIMB

Stock Name: C&O Pharm
Company Name: C & O PHARM TECH (HLDGS) LTD
Research House: CIMB

CIMB starts C&O Pharmaceutical Technology (E92.SG) at Buy with $0.60 target price, based on 12X FY11 P/E, according to Dow Jones.



CIMB says China-based drug maker’s strong R&D capability provides springboard to launch new products, paving way for expansion in local, even international markets.



“C&O is also an attractive partner to foreign drug companies looking to enter the China market,” says CIMB, adding prospects backed by China’s increasing healthcare spending.



Forecasts FY10 dividend of $0.073/share, translating to prospective 17% yield. Shares +2.3% at $0.445.