Brokers' Take

OCBC downgrades Asiapharm to 'Hold'

March 5, 2007
The Straits Times

ASIAPHARM Group's weaker-than-expected fourth-quarter results released last week prompted OCBC Investment Research to lower its rating on the drugmaker.

Despite an earlier tip from the firm's management about a better business environment, OCBC does not see the anticipated turnaround. This is due to continued implementation of tough regulatory measures requiring all drug producers to register products again to uncover unqualified drugs.

OCBC has downgraded AsiaPharm to 'hold' and lowered its target price to 78 cents from 87 cents. It finished at 70 cents last Friday.

OCBC INVESTMENT RESEARCH, March 1
Rating: HOLD