Stock Name: China XLX
Company Name: CHINA XLX FERTILISER LTD.
DBS Vickers Securities in an Oct 12 research report says: "China XLX's share price collapsed 57% since early 2011, under-performing STI by c.40% on the back of weak 1H earnings and investors' risk aversion towards small-mid cap and S-chips.
"Current valuations at GFC trough levels of 0.76x 12-month forward P/BV and 7.6x PE are attractive entry points in our view. Our target price is raised to 40 cents, as we roll over our valuation to blended FY2011/2012 EPS, still based on 12x PE (-1.0SD), translating to 1.1x P/BV (-1.0SD).
"In spite of our conservative forecasts (16-17% below consensus) and valuation methodology, current share price still offers 51% upside to our target price, suggesting stock is oversold and undervalued. UPGRADE TO BUY."
Company Name: CHINA XLX FERTILISER LTD.
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.40 |
DBS Vickers Securities in an Oct 12 research report says: "China XLX's share price collapsed 57% since early 2011, under-performing STI by c.40% on the back of weak 1H earnings and investors' risk aversion towards small-mid cap and S-chips.
"Current valuations at GFC trough levels of 0.76x 12-month forward P/BV and 7.6x PE are attractive entry points in our view. Our target price is raised to 40 cents, as we roll over our valuation to blended FY2011/2012 EPS, still based on 12x PE (-1.0SD), translating to 1.1x P/BV (-1.0SD).
"In spite of our conservative forecasts (16-17% below consensus) and valuation methodology, current share price still offers 51% upside to our target price, suggesting stock is oversold and undervalued. UPGRADE TO BUY."
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