not vested
Oct 2, 2015
<Research Report>UBS Lifts AVICHINA (02357.HK) TP to $7.5, Earnings Forecast Raised on Parent Injection
AVICHINA (02357.HK) has announced an acquisition of AVIC Planning from its parent company for RMB2.2 billion through the issuance of new shares at RMB4.42 each.
USB, in its report, said that the transaction price implies 10.7x 2014 P/E which is not expensive.
The research house raised the target price of AVICHINA from $7 to $7.5, with a rating of Buy.
UBS stated that since AVIC Planning engages in aviation and aerospace-related fixed asset investment. Hence, it would extend AVICHINA's business scope in the aircraft manufacturing supply chain.
Assuming that the consolidation of AVIC Planning takes place in 2016, the broker raised its 2016/2017 forecast for revenue by 32% respectively and for net profit by 35%/ 36%.
Source: AAStocks Financial News