Phillip Sec Raises Sinopipe Target To S$0.60

Phillip Securities raises Sinopipe Holdings (X06.SG) target price to S$0.60 from S$0.575; reiterates Buy call. Broker says target price upgrade reflects recent win of CNY660 million build-transfer-operate piping and infrastructure contract. Says contract win was much larger than expected, outlook promising, "significant further earnings growth looms." Says stock looks attractive with cheap valuation, trades at FY08 P/E of only 5.5X due to rapid forecast earnings growth. Adds revised target price only factors in phase 1 of the contract as details for phases 2 and 3 are yet to be announced. Shares currently down 1.2% at S$0.405.