Ziwo - Starts Ziwo started at Buy by Phillip Securities, $0.47 target

Stock Name: Ziwo
Company Name: ZIWO HOLDINGS LTD.
Research House: Phillip Securities

Phillip Securities starts Ziwo Holdings (I9T.SG) at Buy, $0.47 target pegged at 6x FY11 earnings.



Tips strong growth potential for China-based supplier of raw materials used for making various lifestyle consumer products, given rising consumer spending.

Says, while Ziwo has huge exposure to consumer market, it’s able to keep sales, marketing costs low as it doesn’t need to spend on creating brand awareness as supplier of intermediary products; “Product quality and consistency are more important. It has built on its R&D capability to emerge as one of the bigger players amongst its peers. Therefore its net profit margin is relatively high at above 20%.”



Share +4.5% at $0.35.