Tissue paper business shaping up to be a strong profit driver
No new capacity additions announced; positive for industry dynamics
Raising TP to HKD9.50; reiterating Outperform (2)
We raise our 2017-19E EPS by 1-19% after adjusting our margin assumptions.
We raise our 12-month target price to HKD9.50 (from HKD8.50), based on an unchanged 10x PER (roughly 10% below our target multiple for NDP) applied to the average of our nowrevised
2017- 18E EPS.
We reiterate our Outperform (2) rating.
Key risk: a sustained rise in raw-material prices.
Source: Daiwa
http://asiaresearch.daiwacm.com/eg/cgi- ... pdf#page=1