AmFraser downgrades China Animal Healthcare (EP4.SG) to Hold (previous rating not available), fair value to $0.34 vs $0.39, according to Dow Jones.

AmFraser says, delay in obtaining HFMD vaccine license caused “significant difference” to house model, means they missed February, August biddings for 2010, “something we didn’t count on.”

Research house adds, management trying to salvage some sales this FY “but we’re not too hopeful that this will have a significant effect. We believe it’s wise to assume negligible HFMD vaccine sales for FY10.”

AmFraser says, 3Q sales of RMB160.9 million ($31.5 million) good, +23.7% on-year, +16.4% on-quarter, but far below expectations due to lack of HFMD contributions. Reduces FY10-FY12 revenue forecasts by 20.8%, 13.1%, 15.3% respectively. “However, we believe that the delay has not disrupted the fundamentals of the company. Moreover, there is a potential re-rating opportunity when the Company successfully lists on the Hong Kong exchange by introduction.” Shares flat at $0.365.