Far East Group

Far East Group: Voyage has an Increase Exposure rating with $0.30 TP, and expect the positive momentum to sustain on the back of improving sales in the ASEAN region and higher utilization rate in the China plant. The China’s plant utilization rate has been creeping up, from 30+% in FY12 to about 40+% in end FY13. The plant is currently EBITDA positive and House expect it to be around breakeven level in FY14. The company has other expansion plans like coming up with new products and increasing its ASEAN market share. The company is currently trading at an undemanding FY14F P/E of 4.8X.