Foreland Fabrictech Holdings rated 'buy' by Phillip Securities

Stock Name: Foreland
Company Name: FORELAND FABRICTECH HLDS LTD

Research House: Phillip Securities

Price Call: BUY

Target Price: 0.191

Phillip Securities Research in an Aug 15 research report says: "Revenue was RMB203.3 million (+203.4% y-o-y, +32.4% q-o-q), net profit was RMB38.8 million (+1112.5% y-o-y, +37.1% q-o-q). Revenue and net profit are 38.5% and 41.6% above our estimates.

"This is a record quarter for Foreland in terms of revenue, net profit and sales volume. The outstanding performance is attributed to strong demand for high quality functional fabric. The company has declared an interim dividend of RMB0.027, which is approximately 20% of 1H11 net profit. The company aims to maintain a 20% dividend payout ratio.

"Although market aversion has increased lately, we are keeping our PE peg of 4.35x FY11E earnings and target price of 19.1 cents. We believe Foreland can achieve a record year of profitability. The stock is currently trading at only 2.5x forward earnings. MAINTAIN BUY."

Foreland Fabrictech Holdings rated 'buy' by Phillip Securities

Stock Name: Foreland
Company Name: FORELAND FABRICTECH HLDS LTD

Research House: Phillip Securities

Price Call: BUY

Target Price: 0.191

Phillip Securities Research in a July 8 research report says: "Foreland is a vertically integrated manufacturer of normal and functional fabric.

"Reasons why we are featuring the stock are: (a) An inflexion point was observed in 1Q10, profitability since then has rebounded strongly. Future earnings are premised on strong demand for functional fabrics. (b) Current entry point looks attractive relative to 2 previous batches of placees. 1st batch paid $0.1235, 2nd batch paid 16 cents. (c) A top 10 customer took a 3.9% stake in the company at 16 cents, signifying confidence in a long term business relationship.

"We price Foreland at 4.35x FY11E earnings. This represents a hefty 70% discount to broad market PE of around 14.5x. Target price of 19.1 cents. BUY (initiating coverage)."

Foreland Fabrictech Holdings rated 'buy' by AmFraser

Stock Name: Foreland
Company Name: FORELAND FABRICTECH HLDS LTD

Research House: AmFraser

Price Call: BUY

Target Price: 0.215

AmFraser Research in a June 17 research report says: "Foreland's new plant is expected to be completed in Q1 FY2012. Thereafter, the existing plant will be re-located to the new facility.

"Capacity is expected to increase from the current 45.3 million yards per annum to 58 million yards per annum. While entering the umbrella fabric business, management took care not to alienate their existing apparel customers.

"Gross margins will maintain at between 28% - 30% going forward. As Foreland is a relatively small - capitalisation stock, we believe it should trade at a discount to their HK-listed peers. Ascribing a not-very demanding 5x P/E on the Group's FY2011E EPS of 4.3 cents gives us a fair value of 21.5 cents. BUY."

Foreland Fabrictech Holdings rated 'overweight' by NRA Capital

Stock Name: Foreland
Company Name: FORELAND FABRICTECH HLDS LTD
Research House: NRA Capital

NRA Capital in a May 11 research report says: "Despite 1Q being the seasonally weaker quarter, revenue grew sequentially by 7% to RMB153.5 million (+264% y-o-y), thanks to increased sales volume and average selling prices. The remarkable results were attributed to the headway it has made in supplying high grade umbrella fabric to top umbrella manufacturers in China.

"Average selling price increased 36.3% y-o-y (-0.6% q-o-q) to RMB12.4 per yard while production volume jumped 167% y-o-y (+8% q-o-q) to 12.4 million yards. EBITDA margin jumped 13.3 ppt y-o-y but dropped 0.2ppt q-o-q to 28.7%, versus our estimate of 26.5%.

"We maintain our conservative valuation multiples, pegging at 30% discount on 7x FY11 PER and thus deriving target price of 19.5 cents (previous 18.5), which represent 4.8x FY12 PER and 4.7x FY13 PER. MAINTAIN OVERWEIGHT."

Foreland Fabrictech Holdings rated 'buy' by NRA Capital

Stock Name: Foreland
Company Name: FORELAND FABRICTECH HLDS LTD
Research House: NRA Capital

NRA Capital in a Mar 3 research report says: "Revenue surged tremendously 97% y-o-y (+49% q-o-q) to RMB143 million in 4Q10 on increased sales volume and higher ASP. EBITDA margin increased from 16.1% in 4Q09 (24.6% in 3Q09) to 28.9% in 1Q11.

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Foreland - Foreland Fabrictech started at Buy by CIMB

Stock Name: Foreland
Company Name: FORELAND FABRICTECH HLDS LTD
Research House: CIMB

CIMB starts Foreland Fabrictech (B0I.SG) at Buy with $0.16 target; says “with margins picking up after the recent recession, capacity expansion and producing high-grade products efficiently would be its forward growth drivers,” for Fujian-based fabric maker.

Adds, customer order flows promising since beginning of 2010, expects utilization rates to reach 90% in 4Q10, early 2011 as company fulfills orders for Chinese New Year in early 2011. Prices stock at 0.6x CY11 P/BV, implied P/E for 2011 is 5.7x, “slightly higher than the sector average of Singapore-listed textile-related stocks but below the average for Hong Kong-listed textile stocks.”

Given 3-year EPS CAGR projection of 40.0%, “we believe Foreland should trade higher than its current 0.3X 2011 P/BV.” Adds, house valuation “not lofty” due to strong cash position, dividend yields. Shares flat at $0.09.