Stock Downgraded: Sinomem Tech rating to hold by DMG!

DMG & Partners Securities has cut its rating for Sinomem Technology Ltd to "hold" from "buy", with the Chinese-based water treatment company now trading near its target price of 0.94 sgd. However, the brokerage said it is keeping its forecast of net profit forecast for Sinomem, expecting it to meet its target net profit of 30.9 mln sgd this year, versus last year's 23.9 mln sgd. "Despite gross margin pressure experienced in the first quarter, 2006 performance should remain on track. The expanding downstream capacities, new low-cost membrane production and tax benefits should support growth in 2006," DMG said.