CIMB target price of $1.32!!!!!!!!!!!!!

BCH has achieved its target of 33% POS expansion for 2006 and we believe it is on course

to report 33% topline and 24% bottomline growth. Reduced plastic packaging costs (35%

of COGS) is looking sustainable while alternative raw material sourcing will also help to lift

GP margins. Chinese branded companies like China Hongxing, Synear and Hongguo are

trading at 18-25x CY07 P/E but BCH?s average P/E has instead fallen to a compelling 3-

year low of 8.1x CY07. Our DCF-derived target price is lifted to S$1.32 (12x CY07) from

S$1.06 (9.6x CY07) after adjusting our parameters (11.5% WACC, 4% LTG). We think

BCH deserves a re-rating on valuation grounds while corporate developments this year