China XLX Fertiliser: May rise after posting solid 3Q results. Rev at Rmb773.5m was up 16%YoY and 23.4%QoQ, with net profit at Rmn28.3m up 127%YoY and 24%QoQ, while margins remained strong with 3Q gross margins at 10.96% vs 10.03%QoQ….
We note that 9mthFY10 profits consists ard 70% of FY10 forecast. Grp expects 4Q10 performance to exceed 4Q09, due to higher methanol prices, rise in urea prices and international prices. CIMB maintains Outperform rating, with $0.71 TP based on 7x CY12 P/E….
Technically, Stochastics appear oversold and could be due for a correction. Resistance at $0.64 (recent high) and stop loss at $0.565 (50 day MA)
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