On 4 June, the Company entered into a master sales agreement with anindependent third party, whereby the Company will import tapiocachips and sell to this independent third party for an initial term of oneyear. The new tapioca chips trading business is the Company’s first step todiversify into the biomass energy and resource recycling-based industrybusinesses.
On June 10, the Company announced that it has entered into a supplyagreement with a long standing German customer. The Company willsupply stitch-bonded wiring tapes for use in middle and high-endautomobiles of forecast quantity of approximately 10 million sq.m. (subject tothe actual purchase orders from the German Customer) for the period from 1July 2015 to 30 June 2016.
In light of the Company's new business developments, we increase2015-2017 EPS forecasts by 2.5%, 8.4% and 8.3%, respectively.
We increase the Company's target price from HKD3.50 to HKD4.90,which is equivalent to 10.5x 2015 PER, and maintain ‘Accumulate’investment rating.