CIMB starts Foreland Fabrictech (B0I.SG) at Buy with $0.16 target; says “with margins picking up after the recent recession, capacity expansion and producing high-grade products efficiently would be its forward growth drivers,” for Fujian-based fabric maker.

Adds, customer order flows promising since beginning of 2010, expects utilization rates to reach 90% in 4Q10, early 2011 as company fulfills orders for Chinese New Year in early 2011. Prices stock at 0.6x CY11 P/BV, implied P/E for 2011 is 5.7x, “slightly higher than the sector average of Singapore-listed textile-related stocks but below the average for Hong Kong-listed textile stocks.”