Stock Name: Foreland
Company Name: FORELAND FABRICTECH HLDS LTD
Phillip Securities Research in a July 8 research report says: "Foreland is a vertically integrated manufacturer of normal and functional fabric.
"Reasons why we are featuring the stock are: (a) An inflexion point was observed in 1Q10, profitability since then has rebounded strongly. Future earnings are premised on strong demand for functional fabrics. (b) Current entry point looks attractive relative to 2 previous batches of placees. 1st batch paid $0.1235, 2nd batch paid 16 cents. (c) A top 10 customer took a 3.9% stake in the company at 16 cents, signifying confidence in a long term business relationship.
"We price Foreland at 4.35x FY11E earnings. This represents a hefty 70% discount to broad market PE of around 14.5x. Target price of 19.1 cents. BUY (initiating coverage)."
Company Name: FORELAND FABRICTECH HLDS LTD
| Research House: Phillip Securities | Price Call: BUY | Target Price: 0.191 |
Phillip Securities Research in a July 8 research report says: "Foreland is a vertically integrated manufacturer of normal and functional fabric.
"Reasons why we are featuring the stock are: (a) An inflexion point was observed in 1Q10, profitability since then has rebounded strongly. Future earnings are premised on strong demand for functional fabrics. (b) Current entry point looks attractive relative to 2 previous batches of placees. 1st batch paid $0.1235, 2nd batch paid 16 cents. (c) A top 10 customer took a 3.9% stake in the company at 16 cents, signifying confidence in a long term business relationship.
"We price Foreland at 4.35x FY11E earnings. This represents a hefty 70% discount to broad market PE of around 14.5x. Target price of 19.1 cents. BUY (initiating coverage)."
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