YingLi

YingLi: Sias Research maintains Increase Exposure Call with $0.865 TP. House note that Ying Li reported impressive attributable net profit of RMB 377.2m for 2012. Grp was profitable for all four qtrs of 2012, in contrast with the trend in previous yrs. The Ying Li International Plaza project is on track for completion in phases over FY13 and FY14 with a pipeline of projects lined up for completion from FY15 to FY16. Regarding the convertible bonds, house understand that some segments of the market have had negative perceptions of listed companies issuing convertible bonds, regardless of their true financial strength. Ying Li announced on 7 March 2013 that it has redeemed all $195m of outstanding convertible bonds and related interest on 3 March 2013. Following this exercise, Ying Li’s balance sheet will comprise of plain vanilla equity and bank borrowings, which house reckon will increase the receptivity of this counter to investors.