China XLX: DBS maintains Buy at TP$0.66, 14x FY11 P/E on stronger urea prices and capacity plan. Q3 FY10 net profit of Rmb28m were in line with expectations meeting 73% of DBS full-year estimate. Positive on longer-term prospects with 4th plant being proposed at end-Sept. Potential upgrade dependent on cost (coal prices) and profit (urea prices) margins...
Profits also were in-line with CIMB expectations and TP$0.71 as well. Currently trading at $0.585, bottom of channel but based on ADX no strong trend shown.
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