Stock Name: Foreland
Company Name: FORELAND FABRICTECH HLDS LTD
Research House: NRA Capital
NRA Capital in a May 11 research report says: "Despite 1Q being the seasonally weaker quarter, revenue grew sequentially by 7% to RMB153.5 million (+264% y-o-y), thanks to increased sales volume and average selling prices. The remarkable results were attributed to the headway it has made in supplying high grade umbrella fabric to top umbrella manufacturers in China.
"Average selling price increased 36.3% y-o-y (-0.6% q-o-q) to RMB12.4 per yard while production volume jumped 167% y-o-y (+8% q-o-q) to 12.4 million yards. EBITDA margin jumped 13.3 ppt y-o-y but dropped 0.2ppt q-o-q to 28.7%, versus our estimate of 26.5%.
"We maintain our conservative valuation multiples, pegging at 30% discount on 7x FY11 PER and thus deriving target price of 19.5 cents (previous 18.5), which represent 4.8x FY12 PER and 4.7x FY13 PER. MAINTAIN OVERWEIGHT."
Company Name: FORELAND FABRICTECH HLDS LTD
Research House: NRA Capital
NRA Capital in a May 11 research report says: "Despite 1Q being the seasonally weaker quarter, revenue grew sequentially by 7% to RMB153.5 million (+264% y-o-y), thanks to increased sales volume and average selling prices. The remarkable results were attributed to the headway it has made in supplying high grade umbrella fabric to top umbrella manufacturers in China.
"Average selling price increased 36.3% y-o-y (-0.6% q-o-q) to RMB12.4 per yard while production volume jumped 167% y-o-y (+8% q-o-q) to 12.4 million yards. EBITDA margin jumped 13.3 ppt y-o-y but dropped 0.2ppt q-o-q to 28.7%, versus our estimate of 26.5%.
"We maintain our conservative valuation multiples, pegging at 30% discount on 7x FY11 PER and thus deriving target price of 19.5 cents (previous 18.5), which represent 4.8x FY12 PER and 4.7x FY13 PER. MAINTAIN OVERWEIGHT."
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