We forecast Sihuan to record a 1Q FY09 net profit of Rmb70.7m, up 33.2% YoY, backed by continued sales growth for its key products. The main item to watch, in our view, should be the company’s sales-growth momentum.
Our six-month target price of S$0.93 is based on a peer-average PER of about 7.5x on our 12-month earnings forecast (excluding one-off items) to 2Q FY09. We will publish an update after the results have been announced.Catalysts and action
We maintain our Buy rating for Sihuan, as we expect the AGM and 1Q FY09 results, as well as the coming dividend of Rmb0.153 per share (which gives a yield of about 4.5% at the current share price), to provide a positive boost to the share price over the near term.
Sponsored Links
No comments:
Post a Comment