ChinaPDye   

Fruit of the Loom

Today some how going down already, why?

 

I think it has more upside.



KE has a "buy" recommendation and a target price of $0.51 sgd, on the back of the firm's healthy earnings outlook over the next three years.



The brokerage projects its EPS to show a 26.5% CAGR over the next three years, with ROE projected at 20%.



"We expect a strong second half to follow the mild first half. The better second half will be underpinned by strong seasonality, a sharp ramp-up in the higher margin, value-added services business, as well as the kicking in of benefits from capacity expansion," KE analyst Gregory Yap said in a note.



KE forecasts China Printing & Dyeing will post RMB83.4m in net profit this year from RMB70.3m last year. It sees net profit expanding further to RMB110.5m in 2007 and to RMB142.2m in 2008.



Yap describes the stock as attractively valued at its current share price at an attractive 8x fully diluted FY06 and 6x FY07 EPS.



Full KE report here.

 

So is it still cheap to invest at current 0.375 ?

 

It is rising because KE intiated coverage with price target of $0.51.