Mewah

Mewah: JP Morgan initiate with O/W rating and $1.30 TP. Expect capacity growth and margin expansion to drive earnings growth of 16% CAGR over FY11E-13E. Expect improved economies of scale as refining capacity increase 19% by 2H12. Believe grp may leverage on its distribution network to enter into the processing and distribution of related food products, further capturing downstream distribution margin.