CG Tech (Report from UOB Kay Hian)

CG Technologies higher on laggard interest CG Technologies Holdings Ltd, a manufacturer and distributor of polyethlylene terephthalate (PET) chip and yarn products for the textile industry in China, was higher on laggard buying, dealers said. "Investors are probably buying it because of cheap valuations," an analyst with a local brokerage said, adding that the stock is trading at a price-to-earnings ratio of just six times this year's projected earnings. Just like other textile-related stocks, CG Tech has been enjoying robust earnings growth. In 2005, its net profit rose 24.9 pct to 83.6 mln yuan on the back of strong sales. CG Tech was up 0.03 sgd or 8.45 pct at 0.385 with 25.85 mln shares traded. Another textile-related stock, FibreChem Technologies Ltd, which is rated "buy" by local brokers Phillip Securities and CIMB-GK Research, was up 0.02 sgd or 1.89 pct at 1.08 on 2.28 mln shares.