Mah Wah Holdings (Report from UOB Kay Hian)

Man Wah Holdings Ltd may advance after CIMB-GK Research initiated coverage of the Hong Kong-based home furnishing group with an "outperform" rating and a target price of 0.71 sgd, citing the company's strong earnings potential. "Strong future growth should be underpinned by 100 pct capacity expansion in Huizhou by end-March 2008," CIMB-GK said in a note, given the company's compound annual growth rate of 28 pct for the years to March 2005-2008. Man Wah closed up 0.025 sgd or 4.55 pct at 0.575 on Friday.