Stock Name: Foreland
Company Name: FORELAND FABRICTECH HLDS LTD
AmFraser Research in a June 17 research report says: "Foreland's new plant is expected to be completed in Q1 FY2012. Thereafter, the existing plant will be re-located to the new facility.
"Capacity is expected to increase from the current 45.3 million yards per annum to 58 million yards per annum. While entering the umbrella fabric business, management took care not to alienate their existing apparel customers.
"Gross margins will maintain at between 28% - 30% going forward. As Foreland is a relatively small - capitalisation stock, we believe it should trade at a discount to their HK-listed peers. Ascribing a not-very demanding 5x P/E on the Group's FY2011E EPS of 4.3 cents gives us a fair value of 21.5 cents. BUY."
Company Name: FORELAND FABRICTECH HLDS LTD
| Research House: AmFraser | Price Call: BUY | Target Price: 0.215 |
AmFraser Research in a June 17 research report says: "Foreland's new plant is expected to be completed in Q1 FY2012. Thereafter, the existing plant will be re-located to the new facility.
"Capacity is expected to increase from the current 45.3 million yards per annum to 58 million yards per annum. While entering the umbrella fabric business, management took care not to alienate their existing apparel customers.
"Gross margins will maintain at between 28% - 30% going forward. As Foreland is a relatively small - capitalisation stock, we believe it should trade at a discount to their HK-listed peers. Ascribing a not-very demanding 5x P/E on the Group's FY2011E EPS of 4.3 cents gives us a fair value of 21.5 cents. BUY."
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