11/03/2011 12:25
[I-bank focus] Daiwa rates GCL Poly (03800) "buy" & HK$4.88
Daiwa Research initiated coverage of GCL Poly
Energy (03800) with "buy" rating and a target price of HK$4.88.
The house said the rating reflects its view of high earnings growth potential. It forecast 2011 net profit growth for GCL of 100% YoY through market-share gains, and high entry barriers to becoming a low-cost polysilicon maker with decent quality products. Daiwa expects year-on-year ROE improvements likely for GCL in 2011. It believes the solar industry is undergoing a transition, with demand likely to shift from being policy-driven to economics-driven, and that low-cost producers are the transition enablers.
Daiwa said low-cost polysilicon makers should gain market share fast when the polysilicon price drops, but it expects the real contest to start from 2013, when low-cost polysilicon supply to meet demand worldwide. (KL)
Related Stocks: ： 03800
http://www.etnet.com.hk/www/tc/news/...d=ETE210311145