Stock Buy Call: Fibrechem with a target price of $1.47 by Kim Eng!

Fibrechem is optimistic of achieving its RCPS full year minimum target ofHK$280 million net profit for FY06. We believe this is conservative andmaintain our view that Fibrechem will be able to achieve our earningsforecast of HK$368.7m net profit for the full year, an 87% yoy improvement.With Fibrechem's planned capacity ramp, we are forecasting 3 year EPS CAGRof 38% versus FY06E PE of 5.6x. We are maintaining our price target to S$1.47 per share, based on 9x PER; Buy maintained.