Stock Name: ChinaAniH
Company Name: CHINA ANIMAL HEALTHCARE LTD.
DMG & Partners Securities in an Oct 31 research report says: "3Q11 adjusted net profit of RMB56 million (+5% y-o-y; -5% q-o-q) was below our RMB62 million projection as lower-than-expected animal food and mouth (FMD) vaccines sales of RMB18 million was partially mitigated by powdered drug growth to RMB128 million (our estimates: RMB50 million; RMB117 million respectively).
"Overall 3Q11 revenue increased by 30% to RMB209 million although gross profit margin extended its slide to 70% on new taxes and weaker margins for vaccines. We revise our FY11 earnings estimate down by 11% to RMB213 million but maintain our FY2012 figures.
"New target price of 35 cents (old: 33 cents) pegged to 5x FY12 EV/EBITDA (old: blended FY11/FY12). BUY."
Company Name: CHINA ANIMAL HEALTHCARE LTD.
| Research House: DMG | Price Call: BUY | Target Price: 0.35 |
DMG & Partners Securities in an Oct 31 research report says: "3Q11 adjusted net profit of RMB56 million (+5% y-o-y; -5% q-o-q) was below our RMB62 million projection as lower-than-expected animal food and mouth (FMD) vaccines sales of RMB18 million was partially mitigated by powdered drug growth to RMB128 million (our estimates: RMB50 million; RMB117 million respectively).
"Overall 3Q11 revenue increased by 30% to RMB209 million although gross profit margin extended its slide to 70% on new taxes and weaker margins for vaccines. We revise our FY11 earnings estimate down by 11% to RMB213 million but maintain our FY2012 figures.
"New target price of 35 cents (old: 33 cents) pegged to 5x FY12 EV/EBITDA (old: blended FY11/FY12). BUY."
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