Uni-President China 0220

[winston]

Not vested

DJ MARKET TALK: Daiwa Starts Uni-President China At Outperform
Oct 6, 2010

0825 [Dow Jones] STOCK CALL: Daiwa starts Uni-President China (0220.HK) at Outperform, sets target at HK$6.60, based on 24.6X FY11 P/E.

"We believe Uni-President China could be a major beneficiary of the fast-growing China food and beverage market."

Says main share price drivers include improvements to product mix as result of product-line restructuring, new product launches, distribution-network and sales-force expansion, company's aggressive production capacity-expansion plans.

Source: Dow Jones Newswire

[winston]

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DJ MARKET TALK: Daiwa Cuts Uni-President Target To HK$5.65

0839 [Dow Jones] STOCK CALL: Daiwa cuts Uni-President (0220.HK) target to HK$5.65 vs HK$6.60, after house cuts its 2H10 and FY11 earnings forecasts by 18.4%, 18.0% respectively, due to higher costs assumptions for company's raw material.

Notes, in 4Q10, as prices of raw materials, such as sugar, palm oil and wheat, continue to rise, house expects company's recurring earnings to decline 5% on-year.

"We remain positive over the long term on Uni-President's revenue turnaround story, and believe that any further correction in its share price would provide a good entry point." Keeps Outperform rating. Stock ended down 6.7% at HK$5.01 Tuesday.


Source: Dow Jones Newswire

[winston]

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DJ Uni-President Enterprises Earmarks CNY12 Bln For China Expansion

TAIPEI (Dow Jones)--Uni-President Enterprises Corp. (1216.TW), Taiwan's largest food producer by revenue, said Thursday it earmarked CNY12 billion (US$1.89 billion) for the construction of factories making instant noodles and beverages in China for the coming three years.

Yang Shou-cheng, one of Uni-President's spokespersons, told Dow Jones Newswires the company plans to increase its number of plants in China to 31 by the end of 2013, from 14 now.

The planned investment comes Uni-President said earlier its first-half revenue from China grew more than 40% from a year earlier.

The company's China subsidiary--Uni-President China Holdings Ltd. (0220.HK)--is among the top three juice drinks producers and instant noodles suppliers in China.

Source: Dow Jones Newswires

[winston]

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DJ MARKET TALK: Uni-President At 52-Week High; BNPP Ups To Neutral

1421 [Dow Jones] STOCK CALL: BNP Paribas upgrades Uni-President China (0220.HK) to Hold from Reduce, and raises its target price to HK$7.60 from HK$4.39, after revising higher its FY12/13 earnings forecasts by 35.7%/27.1%.

"We believe Uni-President China can benefit from lower commodity prices, better product mix and increasing scale," it says.

Thus, the house forecasts its operating margin to improve to 4.4% in FY12 from 1.5% in FY11, and expects net profit growth of 154.3%/22.6% in FY12/13.

Uni-President China rallies 2.9% to HK$8.11 and its intraday high of HK$8.30 marks a fresh 52-week high for the stock.

Source: Dow Jones Newswire

[winston]

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U-PRESID CHINA (00220) reiterated UPF with TP hiked to $7 by Stanchart

Standard Chartered reiterated Underperform on U-PRESID CHINA (00220) with target price hiked from $5.7 to $7.

Earnings per share forecast for 2012 was RMB0.21, as the above-estimate profit margin expansion overshadowed the slightly worse-than-expected revenue.

Earnings per share forecast for 2013 was cut to $0.27 on lower revenue growth rate.

Source: AAStocks Financial News

[winston]

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<Research Report>U-PRESID CHINA (00220.HK) maintained at Sell with target lifted to $6.3 by GS

Goldman Sachs said in a report that U-PRESID CHINA (00220.HK)'s net profit amounted to RMB505 million in the 1H, 11% better than the Bank's estimates, while the pre-tax earnings of RMB540 million met its expectation.

The upbeat results were mainly due to higher income of its associates and lower effective tax rate.

The EPS forecast for 2012-2014 was lifted 15%, 7% and 8%, respectively, to RMB0.24, RMB0.24 and RMB0.31.

The Bank estimated that the EPS has peaked in the 1H, while the reading will remain high in the 2H (due to low base in 2H2011).

The EPS of 2013 is expected to rise by only 3%, while the compound growth for 2012-2014 will be 14%.

The target price is lifted from $5.85 to $6.3, with Sell rating maintained.


Source: AAStocks Financial News

[winston]

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U-PRESID CHINA (00220.HK) initiated at Underweight with target $7 by HSBC

HSBC noted in a report that U-PRESID CHINA (00220.HK)'s capital investment may not see returns in short term.

In addition, the 2H sales are showing signs of moderation.

The earning growth is expected to slow from 197% in 2012 to 11% in 2013 and 9% in 2014.

The rating is initiated at Underweight with target $7.


Source: AAStocks Financial News

[winston]

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U-PRESID CHINA (00220.HK) rated Underweight, with target lifted to $6.8 by JPM

JP Morgan noted in a report that U-PRESID CHINA (00220.HK) has closed EBIT in drink business with TINGYI (00322.HK), believing that U-Presid has limited upside potential in gross margin.

In contrast, the EBIT between the two has large gap in instant noodle business, therefore the upside potential is higher.

The Bank estimates that due to limited capacity and high competition, U-Presid's gross margin in instant noodle business may not get improved in near term.

In the long run, if the Group can launch new products, the gross margin may be raised. JP Morgan maintained the Underweight rating.

The Bank lifted the target price of U-Presid from $5.8 to $6.8.


Source: AAStocks Financial News

[winston]

not vested

U-PRESID CHINA (00220.HK) maintained at Buy with target $10.5 by BofA ML

Bank of America Merrill Lynch noted in a report that U-PRESID CHINA (00220.HK)'s earnings in the third quarter totaled RMB300 million (up 20% quarterly; up 140% yearly), 10% above the market expectations, but still slightly below the Bank's estimates, as the benefits of lower raw material costs have not been reflected.

U-PRESID CHINA is still the top pick of the Bank, which expects the earnings will grow more than 30% next year.

The Bank set the target price at $10.5, with the Buy rating maintained.


Source: AAStocks Financial News

[winston]

not vested

U-PRESID CHINA (00220.HK) downgraded to Sell with target raised to $8.7 by UBS

According to management, U-PRESID CHINA (00220.HK)'s 3Q revenue growth is sharply higher than 1H, mainly driven by the noodle and tea drinks, UBS noted in a report.

The Bank said U-PRESID performed better than Tingyi due to its active promotion.

The earnings forecast was raised by 13%-18%, and the target price was lifted from $7.6 to $8.7, with rating cut from Neutral to Sell.


Source: AAStocks Financial News