Post Reply
1-2 of 2
I take all analyst reports with a pinch of salt. :)
luckyman ( Date: 22-Aug-2008 12:25) Posted:
|
UOB KayHian said it maintained its "buy" rating on Singapore-listed Synear Foods but lowered its target price to 0.58 sgd from 0.72 sgd to factor in a slowdown in the frozen food industry.
The broker said that although Synear's second quarter was unsatisfactory, its major competitor Sanquan also released weak results.
"The companies are dominant players in the sector and their poor performances indicate that domestic consumption for frozen food is slowing down," UOB said.
UOB noted that Synear's move into wholesale supplies has strong upside.
Synear has been a supplier of egg tarts to KFC in China over the past several years while after the Chinese New Year it started to supply youtiao, or fried dough sticks.
"As commercial business incurs lower expenses and, more importantly, helps Synear to smooth out seasonal fluctuations, this segment has great potential even though it may not expand quickly in the near term," UOB said.
Synear was up 0.005 sgd, or 1.3 pct, at 0.40 sgd in mid-morning trade.
The broker said that although Synear's second quarter was unsatisfactory, its major competitor Sanquan also released weak results.
"The companies are dominant players in the sector and their poor performances indicate that domestic consumption for frozen food is slowing down," UOB said.
UOB noted that Synear's move into wholesale supplies has strong upside.
Synear has been a supplier of egg tarts to KFC in China over the past several years while after the Chinese New Year it started to supply youtiao, or fried dough sticks.
"As commercial business incurs lower expenses and, more importantly, helps Synear to smooth out seasonal fluctuations, this segment has great potential even though it may not expand quickly in the near term," UOB said.
Synear was up 0.005 sgd, or 1.3 pct, at 0.40 sgd in mid-morning trade.