Consciencefood - Consciencefood started at Buy by UOB, $0.365 target

Stock Name: Consciencefood
Company Name: CONSCIENCEFOOD HOLDING LIMITED
Research House: UOB KayHian

UOB KayHian starts Consciencefood Holdings (L1D.SG) at Buy with $0.365 target price, based on 9.6x FY10 P/E, according to Dow Jones.



UOB KayHian says Indonesia-based noodles maker has defensive earnings profile given its low-cost products: “Demand is relatively inelastic, resulting in the group being able to grow sales and profits even during the 2008-2009 economic crisis.”

Broker expects 2011 earnings to be driven by increased sales volume, aided by expanded product range, new production line to be installed in 2H10/1H11. Tips higher margins as company reduces reliance on external suppliers when production from new plant in Jakarta begins in 2011.



Shares off 2.0% at $0.245.