China Growth Stocks

[Drexion2004]

LPH: Lowered price target from updated redchip research report :

"Impressive YoY growth hampered by muted QoQ performance and lower
profit margins in 1QFY11. Reduced FY11 EPS guidance. Lowering Price
Target from $6.50 to $5.20. Maintaining Strong Buy Rating."

"In 1QFY11, LPH recorded impressive revenue growth of 90.9% YoY on
account of higher revenue from the Gujiao facility and increased average sales price per metric ton of product sold. However, investors reacted negatively to the results amid a QoQ decline of 2.1% in revenue and 7.0% in adjusted net income. Though the Company attributed the weaker sequential performance to a seasonality factor, we do not fully concur with this view. Furthermore, the recent sale of LPH shares by insiders has negatively impacted the stock. Although we continue to maintain our overall positive outlook on LPH shares, we are lowering our price target from $6.50 to $5.20 amid our reduced FY11 earnings estimates. We maintain our Strong Buy rating."

http://www.redchip.com/files/redchipReports/LPH_20101207_1QFY11Update.pdf

-Fernando