Anhui Conch Down 7%
CS Keeps Outperform
down 7.0% at HK$21.40, low of HK$20.70 marks 52-week low, as earnings growth slows markedly in 3Q.
ICEA says under pessimistic case by assuming Conch's revenue to maintain growth rate of about 10% in 4Q08, 2009, 11% net profit margin
reflects valuation of 14X FY09 P/E, which "still relatively high amid the weak market sentiment," thus expects downward pressure on share price.
target price to HK$35 vs HK$60,
Outperform call due to already trough valuations.