Stock Name: ChinaMinzhong
Company Name: CHINA MINZHONG FOOD CORP LTD
DBS Vickers Securities in a Sept 30 research report says: "In our view, MINZ is oversold. MINZ's share price has fallen 52% from its peak of $1.85 in Feb 28. The stock currently trades at 3.8x FY12 PE and 0.7x FY12 P/BV, at about -2 standard deviation from its average valuations of 7x PE and 1.3x P/BV. 4QFY 06/11 and FY06/11 results were within expectations.
"We expect fundamentals to be intact supported by favourable operating environment. In view of the strong earnings visibility, the current valuation gap is unjustifiable.
"Based on lowered target valuation of 5.5x FY12 PE (in line with valuation of S-chip companies under our coverage), we revised our target price to $1.28, representing P/BV of 1.0x. Upside of 43%. UPGRADE TO BUY."
Company Name: CHINA MINZHONG FOOD CORP LTD
| Research House: DBS Vickers | Price Call: BUY | Target Price: 1.28 |
DBS Vickers Securities in a Sept 30 research report says: "In our view, MINZ is oversold. MINZ's share price has fallen 52% from its peak of $1.85 in Feb 28. The stock currently trades at 3.8x FY12 PE and 0.7x FY12 P/BV, at about -2 standard deviation from its average valuations of 7x PE and 1.3x P/BV. 4QFY 06/11 and FY06/11 results were within expectations.
"We expect fundamentals to be intact supported by favourable operating environment. In view of the strong earnings visibility, the current valuation gap is unjustifiable.
"Based on lowered target valuation of 5.5x FY12 PE (in line with valuation of S-chip companies under our coverage), we revised our target price to $1.28, representing P/BV of 1.0x. Upside of 43%. UPGRADE TO BUY."
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