Kukdo Chemical(007690): Rapid growth in enterprise value
- 3Q06 comment
- Revise up TP to KRW30,000 from KRW25,000 / maintain BUY
> TP of KRW30,000 is derived by applying P/B 1.0x and P/E 7.8x on FY07E results.
> Another record-high OP has been reported for 3Q06 thanks to tight supply-demand of epoxy.
> Although the world epoxy production has expanded 8.8% y/y in 2006, supply-demand of epoxy will become even tighter in 2007.
> The company's Chinese subsidiary had solid results in 3Q06.
> Thanks to dominant position in the domestic epoxy market(60% M/S), Kukdo Chemical enjoys stable operation and healthy financial structure. |
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