China Animal: DBSV reiterates Buy Call, but increases TP to $0.45. Tip FMD and PRRS vaccines to drive FY11 earnings, but anticipate dip in FY10F earnings is due to nonrecurring items, estimating FY10 core earnings to grow by 24% YoY. Add that stock is currently trading at 55% discount to Chinese peers, which is unjustified in house view….
TP is peg ed to 13x on blended FY11F/12F earnings (from FY11F previously), and remove
the potential share dilution as conversion of the convertible bonds will only make sense if share price reaches $0.55.
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