Kingboard Chemical Holdings initiated with "peer perform"

07/13/07 - Bear Stearns

LONDON, July 13 (newratings.com) - Analyst Leon Chik of Bear Stearns initiates coverage of Kingboard Chemical Holdings (KGZ) with a "peer perform" rating. The target price is set to HKD44.3.

In a research note published this morning, the analyst mentions that the company is poised to benefit from the shift of electronics production to low-cost China. The consolidation among smaller laminates, PCB and chemicals producers in China is likely to benefit Kingboard Chemical Holdings, the analyst says. The company is expected to expand aggressively into the chemicals business over the forthcoming three-to-five years, Bear Stearns adds. Kingboard Chemical Holdings’ share price has appreciated by 88.3% since May last year, the analyst reports.