Wednesday, May 25, 2011

Sinopipe Holdings rated 'increase exposure' by SIAS

Stock Name: Sinopipe
Company Name: SINOPIPE HOLDINGS LIMITED
Research House: SIAS

SIAS Research in a May 25 research report says: "Sinopipe 1Q revenue and PATMI grew 15.3% y-o-y and 12.1% y-o-y to RMB193 million and RMB14.4 million respectively. 1Q is seasonally weaker owing to the cold winter and festive seasons which affected the number of working days.

"This explains why the quarter revenue and PATMI were 18.2% and 16.1% of our prior full year forecasts. Impacts of higher interest rate will be negated after proceeds from the conditional agreements are available for use.

"We are also upgrading the long term growth rate to 2.5% in view of positive industry outlook. Our model values the company at 45 cents per share. Sinopipe continues to be trading at a cheap valuation of FY11F P/E of 3.7X and P/B of 0.46X. MAINTAIN INCREASE EXPOSURE."

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