Brokers' Take
Asiapharm Group, July 20 close: 70.5 cents
July 21, 2006
The
Business Times
CIMB-GK Research, July 20
Price controls and an industry revamp in China augur well for Asiapharm. Industry consolidation also spells opportunities
for M&As. Given the net proceeds of $63 million Asiapharm raised from a recent placement, the group should be targeting
sizeable acquisitions.
We are maintaining our earnings estimates. However, our target price has been raised to 84 cents from 80 cents as we have
changed our valuation methodology to DCF (WACC 14.5 per cent, terminal growth rate 3 per cent) to better reflect the cash raised
from the placement exercise.
Upgrade to "outperform" from "neutral"
OUTPERFORM
Compiled by Matthew Phan
|
