Hsu Fu Chi Int’l

UOBKH starts Hsu Fu Chi Int’l at Hold with $2.75 target price citing China-focused confectionery maker has mass-market appeal with wide range of products catering to various market segments. With over 95% of sales coming from China, the company is an excellent proxy to rising consumption in China on the back of an appreciating Rmb. The company has more than 3,060 specialty counters across China, dominant position in candy market and superior gross margins but stock already fairly valued.