Stock Name: Consciencefood
Company Name: CONSCIENCEFOOD HOLDING LIMITED
DBS Vickers Securities in an Aug 22 research report says: "We expect sequential improvement in margins as seen in 2Q on lower raw material prices. As ASP increase filters through, we expect gross margins to improve sequentially, which will aid in net profit growth, projected at 32% for FY11F.
"2Q11 results (+21% y-o-y) were within consensus, but below our aggressive estimates. This came about on lower than expected sales volumes, as we had expected strong 1Q growth of 48% y-o-y to continue into 2Q. We have adopted a more conservative stance in our earnings estimate, and trimmed our FY11F/12F earnings forecasts by 11%/23%.
"Our target price is maintained at 35 cents (7xPE), as we roll our valuations to FY2011/2012F earnings. CSF currently trades at a pedestal 4.9x FY11F PE with a PEG of <0.2x, compared with peers' average PE of 16x. MAINTAIN BUY."
Company Name: CONSCIENCEFOOD HOLDING LIMITED
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.35 |
DBS Vickers Securities in an Aug 22 research report says: "We expect sequential improvement in margins as seen in 2Q on lower raw material prices. As ASP increase filters through, we expect gross margins to improve sequentially, which will aid in net profit growth, projected at 32% for FY11F.
"2Q11 results (+21% y-o-y) were within consensus, but below our aggressive estimates. This came about on lower than expected sales volumes, as we had expected strong 1Q growth of 48% y-o-y to continue into 2Q. We have adopted a more conservative stance in our earnings estimate, and trimmed our FY11F/12F earnings forecasts by 11%/23%.
"Our target price is maintained at 35 cents (7xPE), as we roll our valuations to FY2011/2012F earnings. CSF currently trades at a pedestal 4.9x FY11F PE with a PEG of <0.2x, compared with peers' average PE of 16x. MAINTAIN BUY."
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