Stock Buy Call: China Sun ratget price of 1.1 by Westcomb!

Westcomb gave China Sun Bio-Chem Technology Group a "buy" rating and target price of 1.10 in its initial coverage of the cornstarch producer. In a client note, the brokerage cited China Sun's potential to secure a license to produce ethanol fuel as a strong catalyst. "The Shenyang ethanol plant will be a profit booster as the group expects the plant to be completed in 2006. However, the key difficulty now lies on when the government will grant approval for the fuel ethanol licence," Westcomb said. To mitigate this risk, China Sun has planned for the production of both non-fuel ethanol and fuel-ethanol products. In addition, capacity expansion for the corn starch and modified corn starch product was successfully concluded in 2005. As such, the full benefit of the expanded capacity can be reaped in 2006. At 10.44 am, China Sun was up 0.03 sgd or 3.3 pct at 0.945 on volume of 11.521 mln shares.