CLSA upgrades Weigao (01066) to "buy" & HK$25:
CLSA upgraded Weigao (01066) from "underperform" to
"buy", and raised its target price to HK$25 from HK$20.7.
It said Weigao missed 2010 bottom line by 6% due to a one-off SGA cost increase. But
major positive news is Weigao's winning of China's first license to operate dialysis
centres which will boost its dialysis business.
CLSA expects market demand will start to surge and Weigao will be the biggest wiiner as
the first comer. The house expects a 124% Cagr over 2010-2012 on its dialysis business,
and as a percentage of 16.4% to total revenue in 2012, compare to 7.4% in 2009. (KL)
Related Stocks: ： 01066
JP Morgan lifts Weigao (1066) target to HK$23:
JP Morgan lifted its target price for Weigao
(01066) to HK$23 from HK$22.5, and maintained its "overweight" rating.
It said Weigao is perhaps the most defensive healthcare stock under the house's
coverage. The company has faced significant raw material and distribution cost inflation
and heightened competition in many new products. Yet, it delivered 31% sales growth,
lifted gross profits by almost 2%, and net profit grew 26% in 2010.
JPM believes Weigao should be less impacted by regulatory pressure on price caps
compared to pharmaceutical companies and is well-positioned to grow into new areas such as
the operation of dialysis centers. (KL)
Quelle: finanznachrichten.de http://www.aastocks.com/en/ltp/rtquote.aspx?symbol=01066
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