DBS Vickers upgrades RAFFLES EDUCATION to ‘hold’
DBS Vickers' analyst Andy Sim, CFA, said Raffles Education is unlocking the value of its real estate asset.
Raffles' shares have slumped c.30% since May, and the analyst is upgrading the stock to Hold with a revised target price of S$0.52.
Raffles is selling a 50% stake in a subsidiary for S$46m. According to the company's announcement, this subsidiary has interest in various education projects in the region.
The purchaser is Mr Ding Fu Ru, who is said to be an industrialist and real estate developer in China.
The book value of the 50% stake is $22.1m and Raffles will reap S$23.7m net gain.
The deal will be completed by 28 Jul and booked in FY12. Sale proceeds would be used to pare down debts and for working capital purposes.
See also: OKP, RAFFLES EDUCATION : What analysts now say....
CHINA MINZHONG kept 'BUY' by Kim Eng thanks to strong fundamentals
Kim Eng says it is maintaining its BUY call on China Minzhong (SGX: MINZ) with a target price of 2.05 sgd thanks to strong fundamentals for the leading integrated vegetable processor in the PRC.
“Our recent site visit to China Minzhong’s facilities in Putian, Fujian Province has reinforced our positive view on the group despite market concerns over potential share overhang by its private equity shareholders and corporate governance issues involving Chinese companies listed here and abroad,” Kim Eng said.
The brokerage added that it was confident in the foodstuffs firm’s earnings potential.
“In our view, Minzhong’s strong fundamentals are intact, and the stock trades at an attractive 7.1x.”
See also: CHINA MINZHONG, CHEUNG WOH, CHINA TAISAN: What Analysts Now Say...
Kim Eng: CHINA ANIMAL HEALTHCARE ‘unfairly hit’ by S-chip scandals
Kim Eng says China Animal Healthcare’s (SGX: CAL, BUY, target price: 0.46 sgd) share price has corrected by almost 39% since the group won approval last December for its Hong Kong dual-listing status.
“A weaker-than-expected 1Q11 results might have hurt stock value but we believe it was also unfairly hit by the recent spate of accounting and governance scandals involving Chinese companies listed here and abroad.
“We see the current weakness in share price as a good opportunity to buy into this quality stock.”
See also: CHINA ANIMAL HEALTHCARE Down 5% On Its Dual-Listing Debut
