Sansiri

Sansiri Plc (SIRI)

Surprisingly intact FY11 sales despite the floods, a solid backlog, buoyant growth outlook, and expanding economies of scale have led us to take a firmer optimistic stance on SIRI. Upcountry growth, new product segments and corporate tax cuts are additional key drivers. We raise our FY11-13 EPS forecasts on SIRI’s bright revenue outlook, improving cost control and corporate tax cuts. The target price, now based on 6.0x CY13 P/E, is raised by 49%. We reiterate Outperform; a strong 4Q11 results showing and BOT rate cut are near-term catalysts. 
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