JPMorgan Ups China Oriental Target By 73% To HK$8
JPMorgan ups China Oriental's (0581.HK) target price by 73% to HK$8 on ArcelorMittal take-over.
Says ArcelorMittal will help China Oriental cut raw material procurement costs by turning from spot market to contracts.
Expects Chinese steelmaker's FY08 EPS to grow by about 18% on-year on 10% volume growth and improving margins.
Says "margins are likely to improve on cheaper raw material procurement costs and product mix improvement." Pegs stock at Overweight call, which off 0.5% at HK$6.41.
JPMorgan ups China Oriental's (0581.HK) target price by 73% to HK$8 on ArcelorMittal take-over.
Says ArcelorMittal will help China Oriental cut raw material procurement costs by turning from spot market to contracts.
Expects Chinese steelmaker's FY08 EPS to grow by about 18% on-year on 10% volume growth and improving margins.
Says "margins are likely to improve on cheaper raw material procurement costs and product mix improvement." Pegs stock at Overweight call, which off 0.5% at HK$6.41.
