ORLANDO, Fla., Sept. 26, 2006 (PRIMEZONE) -- RedChip Independent, a division of RedChip Companies, announced today that they have initiated research on China BAK Battery Co., Ltd. (Nasdaq:CBAK).
Jin Xing, CFA Level I Candidate, RedChip Research Analyst, wrote in the report:
"CBAK appears to be attractively valued compared to the industry. It is currently trading at a P/E of 17.53 times compared to the industry average P/E of thirty-eight times. CBAK has a PEG ratio of 0.27 and remains fundamentally strong. The Company's EPS is expected to grow at a compound annual rate of sixty-two percent on a fully diluted basis in the next two years with expanded capacities and new products. In addition, its revenue is expected to grow at compound annual rate of ninety-six percent in the next two years. Our twelve month target price of $14.25 will translate into nineteen times FY07 projected earnings."
To receive an abbreviated copy of the RedChip Independent Initial Report for CBAK, please visit: http://www.redchip.com/independent/subscriber.asp?page=requestCBAK.
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RedChip Independent Research Disclosure
The analysts contributing to this report do not hold any shares of CBAK. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. CBAK is not a client of RedChip Companies, or any of its affiliates.