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QNS [OUTPERFORM +19.3%] - New soymilk products make-or-break for future outlook - Update

Company Research

22 Nov 2018

We lower our rating to O-PF as a 12% share price rally in the last two months has left a TSR of 19% to our TP, which edged 1% higher vs our previous report. 2018F-2019F NPAT remain intact. While some valuation discount vs peers is warranted due to its ineffective capital allocation, we believe QNS’s 2018F PER of 8.9x, vs a soymilk/dairy peer median of 20.7x, is undemanding. We forecast Q4 2018 NPAT to maintain 9M 2018 momentum (+15% vs 9M 2017) and jump 23% vs Q4 2017 thanks to improved
Tags: QNS

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