Sino Grandness

Sino Grandness: UOB Kay Hian has Buy Call with $1.10 & $1.30 TP (Technicals) and $1.23 TP (Fundamentals) Note that despite its strong outperformance, SGF still trades at an attractive forward PE of 3.9x. It remains an undervalued consumer co with steady earnings from its canned fruits and vegetables business, which is complemented by robust growth from its bottled juice division. The group is expanding its production capacity in China and has increased its points-ofsales, with its beverages now sold in Walmart, Carrefour and 7- 11. Recently, SGF raised funds which house believe will be used to accelerate capacity expansion plans. This would drive additional sales and earnings this year and next, which could result in higher valuations during the spin-off and listing of its juice subsidiary. House have a target price of $1.23 but see potential upside if its subsidiary lists at a higher valuation.