Stock Name: Consciencefood
Company Name: CONSCIENCEFOOD HOLDING LIMITED
DBS Vickers Securities in a May 30 research report says: "We raise our FY2011F revenue estimates by 20% to Rp861 billion based on: (a) higher sales volume coupled with an ASP rise of 8% at the end of 1Q11; and (ii) commencement of cup noodle sales in 2H11.
"We were previously concerned about CSF's ability to improve and sustain margins. Following Russia's lifting of its ban on wheat exports from 1 July 2011, we believe CSF's margin pressure will ease in 2H11 on higher global wheat supply. The ban has been in place since August 2010.
"Factoring in the impact of better sales volumes and margins, we revise our FY2011F earnings up by 33%. Accordingly, we raise our target price from 26 cents to 35 cents based on 7x FY11F PE, potential upside of 46%. UPGRADE TO BUY."
Company Name: CONSCIENCEFOOD HOLDING LIMITED
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.35 |
DBS Vickers Securities in a May 30 research report says: "We raise our FY2011F revenue estimates by 20% to Rp861 billion based on: (a) higher sales volume coupled with an ASP rise of 8% at the end of 1Q11; and (ii) commencement of cup noodle sales in 2H11.
"We were previously concerned about CSF's ability to improve and sustain margins. Following Russia's lifting of its ban on wheat exports from 1 July 2011, we believe CSF's margin pressure will ease in 2H11 on higher global wheat supply. The ban has been in place since August 2010.
"Factoring in the impact of better sales volumes and margins, we revise our FY2011F earnings up by 33%. Accordingly, we raise our target price from 26 cents to 35 cents based on 7x FY11F PE, potential upside of 46%. UPGRADE TO BUY."
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