Stock Name: Hu An
Company Name: HU AN CABLE HOLDINGS LTD.
Phillip Securities Research in a July 1 research report says: "Hu An Cable's comparable performance means that it is unlikely to be another Chinese fraud, which usually outperforms peers by a big margin.
"High raw material prices and labour rates, together with a melee of competition at the low-end of market, reduced volumes of peer group. But moving to the high-end helps. Wire & cable industry leaders are confident their industry will outgrow China's GDP growth for the next 10 years.
"We added quarterly forecasts for 2011 and extended annual forecasts to 2020. We estimate Hu An Cable's present value (PV) to be $801 million. Its current market cap is only $250 million. However, as we understand the performance of this peer group, we only expect it to trade to 55% discount to PV. This means an immediate target price of 39 cents. MAINTAIN BUY."
Company Name: HU AN CABLE HOLDINGS LTD.
| Research House: Phillip Securities | Price Call: BUY | Target Price: 0.39 |
Phillip Securities Research in a July 1 research report says: "Hu An Cable's comparable performance means that it is unlikely to be another Chinese fraud, which usually outperforms peers by a big margin.
"High raw material prices and labour rates, together with a melee of competition at the low-end of market, reduced volumes of peer group. But moving to the high-end helps. Wire & cable industry leaders are confident their industry will outgrow China's GDP growth for the next 10 years.
"We added quarterly forecasts for 2011 and extended annual forecasts to 2020. We estimate Hu An Cable's present value (PV) to be $801 million. Its current market cap is only $250 million. However, as we understand the performance of this peer group, we only expect it to trade to 55% discount to PV. This means an immediate target price of 39 cents. MAINTAIN BUY."
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