by winston » Wed Sep 19, 2012 12:13 pm
not vested
Summary
Despite the well-flagged headwinds ahead, the Company is currently trading at P/E ratio of merely 6.62x, well below the industrial average.
We recommend to hold inside the portfolio for diversification, as the Company is better valued than the industrial peers possessing upside potential should the market condition turn out better than expected.
The current industrial average P/E is 14.41x and we forecast that the valuation gap will be contracted by 15%, implying a trailing P/E of 7.84x and target price of HK$2.38 with 17.2% upside potential.
We forecast our 12-month target price of Le Saunda be to HK$2.38 with an ` Accumulate ` rating.
Source: Phillips
It's all about "how much you made when you were right" & "how little you lost when you were wrong"