China XLX: CIMB upgrades to O/p from Trading Buy with $0.43 TP. House note that China XLX has climbed 15% since house upgrade three mths ago. Do not think the party is over, given a sustained recovery anchored in CY12-13. The entry of a new strategic institutional investor should add to financial flexibility.
While earnings are unchanged, TP has been lifted as house roll over to a lower 5.5x CY13 P/E (from 7x, still at 50% disc. to larger peers and reflecting the compression in peers’ valuations).
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