MinZhong

Kim Eng has a report yesterday on MinZhong, citing that the recent sell-off of China Minzhong appears overdone, with worst-case scenario analysis suggesting that the negatives have all been priced in. Add that the sharp increase in Minzhong’s trade receivables in 3QFY6/12 is worrying but it is not likely to result in deterioration in its asset quality any time soon. Note also that with counter having corrected so sharply over the last few weeks, a strong rebound is possible. Most houses are still bullish on stock, with 7Buy Calls, 1 Hold and 1 Sell and a Mean TP of $1.10