ChinaSun Q3 loss 36.3% due to the effect Interpretation短期不妙。。有可能掉到 0.56~0.59。 i.e., historical PE 9~9.5... 至于买卖，慎重斟酌。。。
Kim Eng keeps buy call with 0.95 target while ML remains 1.26 target..
Rumours of mass resignations, licence rejection, accounting irregularities and
official investigations have not panned out. Instead, China Sun has been
transparent in its guidance and governance. Further, corn prices have retreated
following the harvest to RMB900/ton now, providing a short term catalyst. We
maintain our BUY call on the stock, but reduce our price target to $0.95 to
reflect a more conservative EPS that includes the exceptional charges.
Our 12 month PO of S$1.26 is based on our DCF valuation, which assumes 12%
WACC and 3% terminal growth.
Risks to our price objective are the following: an unexpected rise in corn prices that affects profit margins; a delay in the ramp-up of the 100,000 ethanol plant; and failure to secure fuel ethanol license in China.
official investigations have not panned out. Instead, China Sun has been
transparent in its guidance and governance. Further, corn prices have retreated
following the harvest to RMB900/ton now, providing a short term catalyst. We
maintain our BUY call on the stock, but reduce our price target to $0.95 to
reflect a more conservative EPS that includes the exceptional charges.
Our 12 month PO of S$1.26 is based on our DCF valuation, which assumes 12%
WACC and 3% terminal growth.
Risks to our price objective are the following: an unexpected rise in corn prices that affects profit margins; a delay in the ramp-up of the 100,000 ethanol plant; and failure to secure fuel ethanol license in China.
Huasing Association 1999 - 2013