Company Name: VIZ BRANZ LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 0.74 |
OCBC Investment Research upgraded instant coffee maker VIZ Branz to ‘buy‘ from ‘hold‘ and raised its target price to S$0.74 from S$0.69, on expectations of continued growth in China and improving margins.
The company posted fourth-quarter net profit of S$3.3 million, more than double from a year ago, helped by cost savings.
OCBC said VIZ Branz’s 2012 sales in China rose 12% to $93.6 million, helping to offset a 3.2% fall in Southeast Asia.
By 10:30 a.m., Viz Branz rose 0.7% to $0.685, and have surged 107% since the start of the year, outperforming the FT ST Fledgling Index’s 16% rise.
Although a possible slowdown in domestic consumption in Asian markets could be a concern, OCBC said the relative affordability of VIZ Branz’s products will help support sales.
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