Lighting up the stage for a blockbuster 2011
http://www.remisiers.org/research//09Apr10-Anwell.pdf
Upgrade to BUY with TP of S$0.78.
With the recent announcement that optical disc manufacturer Anwell Technologies has successfully produced its first thin-film solar panel using its own in-house solar turnkey solution, we have now included the potential profit contributions from its solar business given
that we are now more confident of the company’s technological expertise. With Anwell expected to swing strongly into the black by 2011 due to its earnings potential being realised by then while it is currently priced at just 6.0x FY11F P/E, we upgrade the company to a BUY recommendation and target price of S$0.78 (previously S$0.38) as we believe that the company should trade up to the 50% discount of the industry average at 8.0x FY11F P/E.