Asiaphos

Asiaphos: Voyage initiates at Overweight with TP $0.275. Asiaphos stands out for its natural advantages in the phosphate industry and has outlined a two tier plan to raise mine output and phosphate chemical production. The company owns an integrated phosphate mine and chemical production business. As the company produces its own phosphate rocks, it has a strong cost advantage over other chemical producers. For catalysts, mine output is expected to rise from 128,000 tonnes in FY13 to 264,200 tonnes of phosphate rock in FY14, while maiden contribution from P4 chemical sales should kick in from 2Q14.