DBS Vickers Securities has raised its earnings estimates for computer casings maker Huan Hsin, and reiterated its 'buy' call on the stock with a higher target price of $1.37, up from $1.25.

The bank-backed brokerage has raised Huan Hsin's full-year earnings estimate by 9 per cent to account for an exceptional gain from the disposal of its interest in an associated company, Shanghai Long Fong Foods.

Higher shipments of notebook computers in the last quarter of last year are expected to boost the group's net profits as well, said DBS Vickers.

It also expects the company to gain a larger market share this year because of increased orders from new customers. This has prompted the brokerage to raise Huan Hsin's earnings estimates for financial year 2005 by 8 per cent.

The stock rose 3.5 cents to close at $1.02 last Friday.

DBS VICKERS SECURITIES, Jan 12

Rating: BUY

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The Business Times