Ziwo: CIMB maintains Buy at TP $0.43, 3Q10 net profit of Rmb33.7m was +41.07% above expectations. Demand drove both sales volume (+39.2%yoy) and ASP for all product segments increased. Despite falling margins, growth in rev resulted in 41.7% growth in net profit, Rmb33.7m. Going forward, CIMB believes cost of raw materials will have stabilized and gross margins would remain stable.
Ziwo is currently trading at above avg volume, at resistance of prev high $0.38, trend is up but at oversold level today.
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