Thursday, November 25, 2010


Ziwo: Phillips initiates at Buy with $0.47 TP pegged at 6X FY11 earnings. Tip strong growth potential for China-based supplier of raw materials used for making various lifestyle consumer products, given rising consumer spending….

Note that while grp has huge exposure to consumer market, it's able to keep sales, marketing costs low as it doesn't need to spend on creating brand awareness as Product quality and consistency are more important for suppliers of intermediary products. Add that grp built on its R&D capability to emerge as one of the bigger players amongst its peers, contributing to higher net profit margins, at above 20%

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