Brokers' Take

DBS Vickers expects AsiaPharm to rebound

Nov 13, 2006
The Straits Times

DRUGMAKER AsiaPharm Group's flat third-quarter net gain was the result of the reduced sale of its drugs and export of active ingredients, said DBS Vickers, but a fourth-quarter rebound is likely.

With AsiaPharm having a cash hoard of 437 million yuan (S$87.8 million) by financial year 2007, DBS believes it to be capable of growing via mergers and acquisitions.

DBS has kept its 'buy' call with a target price of 76 cents.

DBS VICKERS, Nov 9
Rating: BUY