Zhen Mingli fell 7.4% but valuation is still attractive


Zhen Mingli (1868.HK) fell 7.4% to HK$7.29. It was reported that the company’s Guangdong Heshan plant had a fire.

Zhen Mingli said that the fire did not damage the production facilities and had no significant impact on its operation. The stock fell 28% from the end of September, due to disappointing results in the first half of 2007, but Commerce and Industry East Asia said that the recent adjustment provides a good opportunity for long-term investors to buy because the bank is still optimistic about the environmentally friendly LED lighting. The prospect of the product. Industrial and Commercial East Asia said that the stock's current share price is equivalent to 11-14 times the expected price-earnings ratio in 2008 and 2009, and the valuation is attractive. The target price is HK$15.70 and the BUY rating is maintained. The turnover of the stock was as high as 10.63 million Hong Kong dollars.

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