RedChip Independent Updates Research On China BAK Battery Co., Ltd.25 November 2006
RedChip Independent, a division of RedChip Companies, announced today that they have updated research on China BAK Battery Co., Ltd. (Nasdaq:CBAK).
Jin Xing, CFA Level I Candidate, RedChip Research Analyst, wrote in the report:
"CBAK is attractively valued compared to the industrial electrical equipment industry. It is currently trading at a P/E (ttm) of 17.34 times compared to the industry average P/E of 24.8 times. CBAK has a PEG ratio of 0.32 which remains fundamentally strong. The Company's EPS has been growing at an annual compounded rate of 36.6% on a fully-diluted basis between FY04 and FY06. Our projected EPS in FY07 is $0.74, representing a 57.9% increase from FY06. As CBAK continues to penetrate the OEM market and expand its production capacity, we believe that the Company will further improve its profit margin. With such strong growth potential, we conclude that CBAK's EPS will grow at an average rate of fifty percent over the next three years. We generate a target price of $14.50, which translates into 19.5 times FY07 projected earnings."
To receive an abbreviated copy of the RedChip Independent Initial Report for CBAK, please visit: http://www.redchip.com/independent/subscriber.asp?page=requestCBAK_Q1_2007s.
About RedChip Independent(tm)
RedChip Companies, Inc. is a well-established source of independent research and information on the small-cap market. Dedicated to "discovering tomorrow's blue chips today(tm)," its analysts seek out up-and-coming and undiscovered small-cap companies before they show up on Wall Street's radar screen. For more information please visit RedChip.com or call 1-800-RedChip.
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RedChip Independent Research Disclosure
The analysts contributing to this report do not hold any shares of CBAK. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. CBAK is not a client of RedChip Companies, or any of its affiliates.
CONTACT: RedChip Companies
1-800-REDCHIP
info@redchip.com
www.redchip.com
Source: primezone
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