China Animal Healthcare (EP4.SG) +5.5% at $0.385 on firm volume in anticipation of greater investor interest as animal-vaccine maker is in final preparatory stages for dual-listing by way of introduction in Hong Kong targeted Dec 21.
First of 3 batches of shares to be transferred to HK from Singapore already under way, with subsequent batches to be moved in coming days. Dual listing comes at a time when company is seeking to expand by raising headcount to 3,000 over the next 2-3 years from 2,000, stepping up R&D.
“We believe that China Animal’s investment merits lie in its strong industry traction; and a sound market expansion strategy,” says CIMB, which has Buy call with $0.52 target. Adds, valuation attractive as stock trades at 6.6x FY11 P/E, with earnings prospects bright given expected 3-year 41.1% net profit CAGR. Immediate resistance at $0.40.
