JK Yaming   

Well positioned to shine

SIAS Research starts JK Yaming at Buy with $0.505 target, based on 7.5X FY09 earnings. Says maker of energy-saving lamps used in industrial, commercial buildings "well positioned to shine" as demand expected to soar with high oil prices boost greater energy conservation; "a simple head count of the growing number of subways and highways being laid out across the cities of China will give a rough idea of the potential demand for induction lamps." Expects addition of one more production line by 3Q08 to yield 3-fold increase in production capacity for induction lamps, translating to proportional rise in FY09 revenue. But says earnings visibility from FY10 may be hazy if company can''t differentiate itself from rivals; notes about 50 companies produce similar products in China currently.