Thursday, February 1, 2007

Stock Focus - Asiapharm

Notice I have taken keen interest into this company....just sharing my view and updates.


Recommendations:

1) CIMB - OUTPERFORM, target price - S$0.96

2) OCBC - BUY, target price - S$0.87


News update:

China's National Development andReform Commission (NRDC) announced its latest price changes to 354 drugs,effective 26 Jan 07. Over 240 drug prices were cut by an average of 20%while prices of 100+ drugs' were increased. APHM announced yesterday that 3patented drugs were affected (Maitongna, Okai and Sidinuo).

Strong fundamentals with its aquisitions and monoply on some drugs will result in only a marginal hit from the news. Strong ability to adapt to the recent regulatory changes in the China drug industry proves its ability.
Current Stock Watch: Asiapharm, Sapphire, Aztech, Lifebrandz, Hong Leong Asia

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