JUL-23-ERSTE GROUP-Recommendation List International Stocks

8/9/2019 JUL-23-ERSTE GROUP-Recommendation List International Stocks

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Erste Group Research - Recommendation List 23 July 2010 Page 1

Recommendation ListInternational Stocks 23 July 2010

New recommendations:

AT&S HTC Corp. Perseus Mining

Bekaert

Cancelled:

Novo Nordisk Johnson & Johnson


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Core Investments Modelportfolios

since 1.1.03 since 1.1.10 seit 1.1.03 since 1.1.10

S&P 500 1% 9% Portfolio 108% 16.3%

Amerika S&P 500 $ 24% -1.9% Portfolio (Lo) 155% 5%

Security ISIN Country Sector

PurchaseDate

PurchasePrice

CurrentPrice

Perf.Euro

Outperf.local

Perf.local

VALEANT PHARMACEUTICALS US91911X1046 US Pharma 15.01.2010 34.5 54.7 75.2% 62.6% 58.9%JOHNSON & JOHNSON US4781601046 US Healthcare 14.09.2007 63.1 57 -3.1% 16.7% -9.6%BIOGEN IDEC INC US09062X1037 US Biotechnology 15.05.2009 49 56.2 20.1% -9.2% 14.6%DEL MONTE FOODS US24522P1030 US Food 02.10.2009 11.6 13.8 37.7% 12.3% 18.9%NATIONAL BEVERAGES US6350171061 US Beverages 02.10.2009 11.1 14 40.1% 19.1% 25.8%AMBEV BRAMBVACNPR1 BZ Beverages 27.11.2009 167.1 189 29.1% 15.1% 13.1%CLIFTON STAR RESOURCES CA18713J1084 CN Gold Mining 18.06.2010 4.4 3.9 -15.2% -8.2% -10.6%SILVER WHEATON CA8283361076 CN Silver Mining 07.05.2010 19.5 19.7 0% 3.9% 0.9%MAGMA DESIGN AUTOMATION US5591811022 US Technology 23.04.2010 3.7 3.3 -7.9% -1.2% -10.7%OSISKO MINING CA6882781009 CN Gold Mining 16.07.2010 11.8 11.8 0.3% 1% 0.3%


STOXX 600 26% 0.2% Portfolio 79% 11.4%

Europa

Security ISIN Country Sector

PurchaseDate

PurchasePrice

CurrentPrice

Perf.Euro

Outperf.local

Perf.local

NOVO NORDISK DK0060102614 DK Pharma 05.02.2010 373.5 497 31.4% 16.2% 33.1%NESTLE CH0038863350 CH Food 11.06.2010 54.4 53.6 1.4% 1.4% -1.5%BEKAERT BE0003780948 BE Industrial 23.07.2010 147.4 #WERT! #WERT! #WERT! #WERT!HENKEL DE0006048432 DE Consumer Goods 18.06.2010 41.4 39.9 -3.7% -2.4% -3.7%FRESNILLO GB00B2QPKJ12 GB Silver & Gold Mining 11.06.2010 1013 1104 6.3% 5.4% 9%RANDGOLD GB00B01C3S32 GB Gold Mining 07.05.2010 5580 6055 9.3% 7.5% 8.5%ARM HOLDINGS GB0000595859 GB Technology 23.04.2010 258.9 316.5 25.5% 28.5% 22.2%


Asien MSCI Far East 16% 7.6% Portfolio 95% -13.5%

MSCI Far East (Lo) 8% -8.6% Portfolio(Lo) 127% -22.4%

Security ISIN Country SectorPurchaseDate

PurchasePrice

CurrentPrice

Perf.Euro

Outperf.local

Perf.local

HTC Corp TW0002498003 TW Computers 23.07.2010 551 #WERT! #WERT! #WERT! #WERT!

MITSUBISHI CORP JP3898400001 JN Diversified 23.07.2009 1571 1823 23.9% 21.9% 16%INFOSYS TECHNOLOGIES INE009A01021 IN Technology 22.02.2008 1580.1 2757.8 70.3% 118.8% 74.5%PERSEUS MINING AU000000PRU3 AU Gold Mining 23.07.2010 2.3 #WERT! #WERT! #WERT! #WERT!MEDUSA MINING AU000000MML0 AU Gold Mining 23.04.2010 4.5 4 -11.3% -15.3% -11.8%REAL GOLD MINING KYG740991057 HK Gold Mining 23.04.2010 12.5 11.3 -6.9% -13.2% -9.7%

since 1.1.03 since 1.1.10 seit 1.1.03 since 1.1.10ATX 110% -3.3% Portfolio 750% 1.9%

sterreich

Security ISIN Country SectorPurchaseDate

PurchasePrice

CurrentPrice

Perf.Euro

Outperf.local

CONWERT IMMOBILIEN AT0000697750 AT Real Estate 11.03.2010 8.4 8.7 3.1% 7.3%SPARKASSEN IMMO AT0000652250 AT Real Estate 07.10.2009 5.2 5.1 -2.9% 4.5%RAIFFEISEN INTERNATIONAL AT0000606306 AT Financial 08.02.2010 33.8 33.5 -1.1% -1.3%austriamicrosystems AT0000920863 AT Technology 09.07.2010 35 37.6 7.6% 4.1%VIENNA INS. GROUP AT0000908504 AT Financial 26.05.2006 46.6 36 -22.7% 13.8%INTERCELL AT0000612601 AT Consumer, non-cyclical 06.04.2005 5.7 13.8 141.4% 152.2%

VOESTALPINE AT0000937503 AT Industrial 07.10.2009 24.5 25 1.9% 9.3%RHI AT0000676903 AT Industrial 10.03.2008 27 20.9 -22.7% 11.6%BWT AT0000737705 AT Industrial 19.05.2009 14.2 18.6 31.4% 13.4%SEMPERIT AT0000785555 AT Industrial 18.06.2009 19.4 28.1 44.9% 25.9%OMV AT0000743059 AT Oil & Gas 24.01.2008 43.6 25.1 -42.4% -4.4%KAPSCH TRAFFICCOM AT000KAPSCH9 AT Traffic Management 13.02.2008 27.3 30.5 11.6% 49.8%IMMOFINANZ AT0000809058 AT Real Estate 29.04.2010 3.1 2.4 -22% -13.8%AT&S AT0000969985 AT Technology 23.07.2010 11.6


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USA - Core Investments

Market Cap. (Mil. EUR) 3,205 Return on Equity 84.68

Beta 0.92 Operating Margin 30.01

52-Week-High 55.51 Debt Ratio 61.8

52-Week-Low 24.37 Dividend Yield

PE current Year 24.88 Earnings Growth current year

PEG Ratio 1.88 Earnings Growth next year 3.22

Price/Book Ratio 9.68 Historical Earnings Growth 3.14

Price/Sales Ratio 4.99 Historical Sales Growth 3.13

VALEANT PHARMACEUTICALS

After many years the company is restructured now and in

a much better shape than before. We expect above

sector average growth of earnings and sales for the next

years. Especially the company's exposure to Emerging

Markets is attractive for investors. BUY

MARKET DATA / VALUATION PROFITABILITY / GROWTH (in %)

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07.09 09.09 11.09 01.10 03.10 05.10

VALEANT PHARMACEUTICALS MAV 30 MAV 60

Market Cap. (Mil. EUR) 121,628 Return on Equity 26.35Beta 0.67 Operating Margin 27.152-Week-High 66.2 Debt Ratio 22.3352-Week-Low 56.86 Dividend Yield 3.66PE current Year 12.03 Earnings Growth current year -3.68PEG Ratio 1.73 Earnings Growth next year 4.45Price/Book Ratio 2.97 Historical Earnings Growth 4.4Price/Sales Ratio 2.53 Historical Sales Growth 5.06

JOHNSON & JOHNSON

Cancellation: Due to reported serious quality problemsin some manufacturing plants we expect the stock tounderperform the market for some quarters.


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JOHNSON & JOHNSON MAV 30 MAV 60




52-Week-Low 41.75 Dividend Yield 0

PE current Year 12.82 Earnings Growth current year 26.22




BIOGEN IDEC INC

Biogen Idec is a globally active Biotech company with

constantly improved sales and profits. The stock is

attractively valued at a PE of 13x and offers investors

high upside potential.


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BIOGEN IDEC INC MAV 30 MAV 60


4/17



Market Cap. (Mil. EUR) 2,124 Return on Equity 14.23Beta 0.84 Operating Margin 13.5852-Week-High 16.14 Debt Ratio 41.452-Week-Low 8.92 Dividend Yield 2.62PE current Year 10.5 Earnings Growth current year 64.86PEG Ratio 1.31 Earnings Growth next year 1.23Price/Book Ratio 1.5 Historical Earnings Growth 1.2


DEL MONTE FOODS

Del Monte Foods is a food producer also with sales withinthe pet food market. The company is improving isprofitability which is mainly driven by sales and margingrowth. Due to the cheap valuation (PE: 10) we expect

the stock to clearly outperform the S&P 500 in the longrun.


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DEL MONTE FOODS MAV 30 MAV 60

Market Cap. (Mil. EUR) 498 Return on Equity 21.11


52-Week-High 14.27 Debt Ratio 0



PEG Ratio Earnings Growth next year 0.71



NATIONAL BEVERAGES

National Beverage Corp. is a small company with just

1.200 employees that produce and distribute soft drinks.

We already can see some signs of improvement with

regard to some profitability measures. The company has

a solid balance sheet and also growing cash flows. In our

opinion there is a realistic chance of the stock to

outperform the S&P 500 in the medium term.


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07.09 09.09 11.09 01.10 03.10 05.10

NATIONAL BEVERAGES MAV 30 MAV 60




52-Week-Low 130.05 Dividend Yield 4.07


PEG Ratio 1.89 Earnings Growth next year 9.72Price/Book Ratio 5.15 Historical Earnings Growth 9.71


AMBEV

Companhia de Bebidas das Americas (AmBev) is the

largest beverage producer in South America. It produces

beer, soft drinks, teas, mineral water, and sports drinks.

The company's main brands are Antarctica, Brahma, andSkol. Ambevs sales grew at an average of about 10%

since 2006. The valuation is at peergroup level and the

business growth prospects are high. We recommend

buying this stock.


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AMBEV MAV 30 MAV 60


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Market Cap. (Mil. EUR) 136 Return on Equity

Beta 1.43 Operating Margin -4.14



PE current Year Earnings Growth current year 97.58

PEG Ratio Earnings Growth next year -0.07

Price/Book Ratio Historical Earnings Growth -0.07


MAGMA DESIGN AUTOMATION

Magma Design Automation is a small software producer

for the semiconductor industry. After restructuring of the

company we can clearly see improvements in profitability

and expect the continuation of this successful turnaround

situation. Under these circumstances the stock has a farabove average potential for further advances.


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07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10

MAGMA DESIGN AUTOMATION MAV 30 MAV 60

Market Cap. (Mil. EUR) 5,032 Return on Equity 9.03Beta 1.2 Operating Margin 48.9552-Week-High 22.65 Debt Ratio 7.352-Week-Low 9.21 Dividend Yield 0PE current Year 42.18 Earnings Growth current year 457.14PEG Ratio 2.05 Earnings Growth next year 0.39Price/Book Ratio 3.66 Historical Earnings Growth 0.38Price/Sales Ratio 21.64 Historical Sales Growth 0.92

SILVER WHEATON

The Canadian company buys silver by-products fromcompanies that mine silver. Silver Wheaton in its sectoris an important market participant with prospects forfurther earnings growth in the coming years.


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07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10

SILVER WHEATON MAV 30 MAV 60

Market Cap. (Mil. EUR) 81 Return on EquityBeta 0.67 Operating Margin52-Week-High 8.25 Debt Ratio 052-Week-Low 1.85 Dividend YieldPE current Year Earnings Growth current yearPEG Ratio Earnings Growth next year -0.09Price/Book Ratio 4.15 Historical Earnings Growth -0.09Price/Sales Ratio Historical Sales Growth -0.11

CLIFTON STAR RESOURCES

A small Canadian gold explorer that is successful indelivering good results concerning existing gold reserves.The company is working together with Osisko Mining.

Due to its small market cap it is risky but offering farabove average performance perspectives for potentialinvestors.


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CLIFTON STAR RESOURCES MAV 30 MAV 60


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Market Cap. (Mil. EUR) 3,256 Return on Equity -3.03Beta 0.84 Operating Margin52-Week-High 12.45 Debt Ratio 14.7952-Week-Low 6.42 Dividend Yield 0PE current Year Earnings Growth current yearPEG Ratio Earnings Growth next year -0.08Price/Book Ratio 3.6 Historical Earnings Growth -0.08Price/Sales Ratio Historical Sales Growth

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OSISKO MINING

Osisko is one of the most successful gold miningcompanies in Canada. Production will start at the end of2010. The company has far above average proven goldreserves. It will be able to mine the metal with low costs.

The takeover of Brett Resources and cooperations withClifton Star Resources and Bowmore will promoteOsisiko's developement in the long run.


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OSISKO MINING MAV 30 MAV 60


7/17


Europe - Core Investments

Market Cap. (Mil. EUR) 39,904 Return on Equity 31.34Beta 0.73 Operating Margin 29.2452-Week-High 519 Debt Ratio 3.7452-Week-Low 299.5 Dividend Yield 1.78PE current Year 25.95 Earnings Growth current year 14.73PEG Ratio 1.33 Earnings Growth next year 17.97Price/Book Ratio 9.03 Historical Earnings Growth 17.82


NOVO NORDISK

CANCELLATION: With the performance of 31% in Euro since

early February, the stock has more than met our expectations.

Because of the ailing technical constellation (Double Top), we

now take the stock from our recommendation list.


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NOVO NORDISK MAV 30 MAV 60









NESTLE

The Swiss food group has already convinced for years

with rising sales and strong margins. With an expected

P/E of 15x for 2011, Nestle valued at the same multiple

as the sector (Stoxx 600 - Food producers). In addition,

the stock currently offers a dividend yield of 3%. Nestle is

a good defensive share with potential.


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NESTLE MAV 30 MAV 60





PE current Year 23.72 Earnings Growth current year -51.06




HENKEL

Handle is a consumer products manufacturer

headquartered in Germany. The company is active in

three main areas "detergent", "Cosmetics and Personal

Care" and "Adhesives, Sealants and Surface Treatment."The company has a global presence- of the

approximately 50,000 employees, more than work 80%

outside Germany. 40% of annual sales come from

outside of Europe. With a P/E of 14x for 2011, the

company is valued below the sector. We continue to

expect positive earnings in this defensive sector. Buy.


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HENKEL MAV 30 MAV 60


8/17





52-Week-High 6600 Debt Ratio 0.25

52-Week-Low 3351 Dividend Yield 0.31





RANDGOLD

Randgold is a Britsh operator of gold mines in Africa. The

largest mines are located in Mali, the Ivory Coast and

Senegal. In the recent quarters the company increased

turnover, profit and operating margin above its peers. In

line with our positive outlook for a rising gold price, weexpect an above-average performance of Randgold. Buy.


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RANDGOLD MAV 30 MAV 60



52-Week-High 1139 Debt Ratio 0






FRESNILLO

Fresnillo is the world's largest primary silver producer (3rd in

worldwide total production) and Mexico's second largest gold

producer. The company is listed on the LSE and operates four

producing gold and silver mines and three exploration projects.

Fresnillo plans to double silver production within the next ten years

and increase its gold production to further diversifying its precious

metal asset base in Mexico and possibly in other countries in South

America. In 2009, Fresnillo increased silver production by 9% to a

record 38 Mio. ounces. The company also increased gold production

by 5% to 277,000 ounces. We believe the silver price will extend its

gains and therefore recommend to buy the stock.


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07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10

FRESNILLO MAV 30 MAV 60

Market Cap. (Mil. EUR) 5,331 Return on Equity 5.47Beta 0.85 Operating Margin 12.5152-Week-High 362.4 Debt Ratio 052-Week-Low 120.5 Dividend Yield 0.87PE current Year 104.77 Earnings Growth current year -7.33PEG Ratio 2.5 Earnings Growth next year 0.03Price/Book Ratio 6.09 Historical Earnings Growth 0.03Price/Sales Ratio 13.89 Historical Sales Growth 0.1

ARM HOLDINGS

ARM Holdings is a technology company headquartered inEngland. The company is best known for its processors,although it also designs, licenses and sells softwaredevelopment tools The ARM Holdings is considered to be

market dominant in the field of mobile phone chips, particularlysmart phones. A characteristic feature of ARM processors istheir low electric power consumption. With the acceleratinggrowth of the smart phone market worldwide we see furtheropportunity in this stock.


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ARM HOLDINGS MAV 30 MAV 60


9/17









Price/Book Ratio 2.31 Historical Earnings Growth 7.67Price/Sales Ratio 1.21 Historical Sales Growth 13.37

BEKAERT

NEW RECOMMENDATION: Bekaert is a Belgian company with

18,000 employees. The company specializes in advanced

metal transformation and advanced materials and coatings.

Main customers are the automotive and construction. Products

include wire and cable, structural steel, fences and filters. Thecompany is well positioned internationally and generates almost

70% of its sales outside Europe. With a P/E of 12x for 2010 and

a very strong technical chart, the stock is a buy

recommendation.


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BEKAERT MAV 30 MAV 60


10/17


Asia - Core Investments




52-Week-Low 1935 Dividend Yield 1.1





INFOSYS TECHNOLOGIES

The Indian IT service provider is one of the biggest

beneficiaries of globalization. In the past quarter,

turnover exceeded the USD 1 billion mark for the f irst

time, EBIT-margin increased to 28.8 %. For the current

fiscal year, the company expects nearly 30% of profit and

sales growth, due to the current record backlog certainlya realistic expectation. After the recent price declines, we

see the stock now at an attractive entry-level.


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INFOSYS TECHNOLOGIES MAV 30 MAV 60

Marktkap. (Mio. EUR) 28.547 Eigenkapitalrentabilitt 10,22Beta 1,23 Operative Marge 4,0052-Wochen-Hoch 2.542,00 Fremdkapitalquote 57,0452-Wochen-Tief 1.725,00 Dividendenrendite 3,03KGV aktuelles Geschftsjahr 11,39 Gewinnwachstum aktuelles Jahr -25,27Dynamisches KGV 0,42 Gewinnwachstum nchstes Jahr 166,24Kurs/Buchwert 1,05 Historisches Gewinnwachstum 165,86Kurs/Umsatz 0,68 Historisches Umsatzwachstum

MITSUBISHI CORP

RENTABILITT / WACHSTUM (in %)

Mitsubishi Corp. ist ein japanischer Handelskonzern, der zu den zehngrten Unternehmen an der Tokioter Brse zhlt. Mitsubishi ist auchin Zeiten der Wirtschaftskrise ein hoch profitables Unternehmen, dassich durch zahlreiche Investitionen in den letzten Jahren zu einerBeteilungsgesellschaft mit groen Wachstumschancen entwickelt hat.Der Konzern wird an der Brse aufgrund von der 1,4 Mrd. Barrellreserven als reiner Rohstoffwert gehandelt, ist aber unter anderemJapans grter Hhnerproduzent, Besitzer einer Fastfood Kette, undhlt Beteiligungen an einem Batteriehersteller, einem australischemBergwerk und einer Supermarktkette. Wir empfehlen Mitsubishi Corp.als breit diversifiziertes Japan-Investment zum Kauf.

MARKTDATEN / BEWERTUNG

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MITSUBISHI CORP MAV 30 MAV 60

Market Cap. (Mil. EUR) 532 Return on Equity 37.93Beta 1.21 Operating Margin 62.8552-Week-High 4.89 Debt Ratio 052-Week-Low 2.18 Dividend Yield 0PE current Year 13.12 Earnings Growth current yearPEG Ratio Earnings Growth next year 0.23Price/Book Ratio 5.5 Historical Earnings Growth 0.23Price/Sales Ratio 9.16 Historical Sales Growth 0.55

MEDUSA MINING

Australia based Medusa Mining is a debt-free andunhedged company, producing gold at cash costs ofUSD 190 per ounce. The current resource of almost700,000 ounces should be extended to up to 7 millionounces within the next few years. In the medium-term,

Medusa wants to produce 300,000 to 400,000 ounces.The exploration is fully financed from cash f low,moreover we like the shareholder structure.


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MEDUSA MINING MAV 30 MAV 60


11/17


Asia - Core Investments


Beta Operating Margin 72.77




PEG Ratio Earnings Growth next year 0.79



REAL GOLD MINING

Real Gold Mining is a chinese low-cost producer (cash

costs at USD 208 per ounce) with high-grad mines in

Inner Mongolia. The strong production growth from

capacity expansion and potential acquisitions indicate

attractive upside potential. Therefore we expect thevaluation gap vs. it's peers to narrow.


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REAL GOLD MINING MAV 30 MAV 60

Market Cap. (Mil. EUR) 677 Return on Equity -4.99

Beta 1.26 Operating Margin



PE current Year Earnings Growth current year 22.38

PEG Ratio Earnings Growth next year -0.03

Price/Book Ratio 4.96 Historical Earnings Growth

Price/Sales Ratio Historical Sales Growth 0.02

PERSEUS MINING

New Recommendation: The Austrialian Gold Explorer

has about 7 Mio. Ounces of gold in resouces and will

start production in Q3 2011. Besides the experienced

management, we like the low valuation, high exploration

potential as well as low cash costs.


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PERSEUS MINING MAV 30 MAV 60



52-Week-High 583 Debt Ratio 0




Price/Book Ratio 6.62 Historical Earnings Growth 28.18Price/Sales Ratio 2.99 Historical Sales Growth 46.37

HTC Corp

New Recommendation: The Taiwanes hight-tech

company is specializing in smart phones and currently

holds 70% market share for Windows Mobile

smartphones. The stock is a good buy, due it's low

valuation, dynamic growth, stable margins and a dividend

yield of nearly 5%.


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HTC Corp MAV 30 MAV 60


12/17


Austria XetraCore Investments

Market Cap. (Mil. EUR) 745 Return on Equity 2.98Beta 0.76 Operating Margin 54.5152-Week-High 10.3 Debt Ratio 55.9252-Week-Low 6.14 Dividend Yield 3.45PE current Year 18.52 Earnings Growth current year 60.05PEG Ratio n.a. Earnings Growth next year 51.48Price/Book Ratio 0.55 Historical Earnings Growth -31.52

Price/Sales Ratio 3.45 Historical Sales Growth n.a.

CONWERT IMMOBILIEN

The residential property company is mainly focused onAustria and Germany. Positive is the currently runningshare buyback programme and the valuation of the stockbelow our DCF value and the NAV per share. The start of

dividend payments should be seen positively from ourpoint of view. Additionally, the investment of the syndicatearound H.P. Haselsteiner is certainly attractive for thestock. The envisaged full ECO-takeover should be valueaccretive in the mid-/long-term. Our target price: EUR10.7.


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07.09 09.09 11.09 01.10 03.10 05.10CONWERT IMMOBILIEN MAV 30 MAV 60






PEG Ratio n.a. Earnings Growth next year 55.31



SPARKASSEN IMMO

S Immo disposes of a broadly diversified and conserva-

tively financed property portfolio with a focus on A, GER

and the CEE countries. The currently running

development projects will bring a strong improvement in

cash flows, esp. in 2010/11. The valuation of the stock

exceeds the peer group level based on P/NAV, but due to

expected jump in results it actually becomes much more

attrative. Acquisitions of distressed assets are possible

additional share price triggers. Our target price: EUR 6.5.


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SPARKASSEN IMMO MAV 30 MAV 60


Beta 1.34 Operating Margin n.a.





Price/Book Ratio 0.89 Historical Earnings Growth -32.57Price/Sales Ratio n.a. Historical Sales Growth n.a.

RAIFFEISEN INTERNATIONAL

Raiffeisen International (RI) is the holding company for 16

network banks and 17 leasing companies covering the

entire CEE region (including Belarus, Ukraine and

Russia). RI trades rather low in a peer group comparison

due to the happenings around the merger with RZB. Given

that there are some signs of economic improvement in the

CEE region, we see a diminishing probability for negative

surprise. Our target price: under review.


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RAIFFEISEN INTERNATIONAL MAV 30 MAV 60


13/17




Beta 1.02 Operating Margin n.a.






Price/Sales Ratio n.a. Historical Sales Growth n.a.

VIENNA INS. GROUP

Austrias largest insurance company sets great store by the

expansion into CEE. Almost 50% of the premium volume is

already being earned in the region. In Romania, Bulgaria,

Slovakia and Czech Republic the company is already number

one. The company has a total of some 20 million customers in

24 countries. The GDP of the CEE region is lower GDP incomparison to Western Europe and the region has an enormous

growth potential with respect to insurance density, despite the

short-term negative effects from the economic situation. Our

target price: EUR 44.5.


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VIENNA INS. GROUP MAV 30 MAV 60

Market Cap. (Mil. EUR) 674 Return on Equity -4.61

Beta 0.75 Operating Margin -29.41



PE current Year n.a. Earnings Growth current year -10.49

PEG Ratio n.a. Earnings Growth next year -124.24

Price/Book Ratio 1.91 Historical Earnings Growth -241.23


INTERCELL

Intercell is the first biotech company listed on Wiener

Brse specialized in the development of therapeutic and

prophylactic vaccines. The vaccine market offers excellent

growth perspectives. The first successfully launched

vaccine is against Japanese encephalitis, where sales are

growing. The company has a lot more projects in the

pipeline and in the clinical testing phase with cooperation

partners (esp. Novartis/Merck/Glaxo). Our target price:

EUR 27.


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INTERCELL MAV 30 MAV 60









IMMOFINANZ

Immofinanz is one of the largest property companies in

the CEE region und has been successfully restructured by

the new board around CEO Zehetner, following financial

difficulties. We initiate our coverage with a target price of

EUR 3.0. The current attractive multiples (P/NAV,EV/EBITDA) confirm our positve stance on the share.


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IMMOFINANZ MAV 30 MAV 60


14/17




Beta 0.97 Operating Margin 7






Price/Sales Ratio 0.46 Historical Sales Growth -4.34

VOESTALPINE

voestalpine is a comparatively defensive Austrian steel

company with extensive downstream activities and a clear

focus on high quality niche positions. Long-term contracts

also contribute to a more stable earnings pattern in

comparison to peers. It enjoys a unique regional locationto supply CEE markets with high quality products. Despite

voestalpine's high indebtedness it has no immediate

refinancing needs. Our target price: EUR 28.


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VOESTALPINE MAV 30 MAV 60









RHI

RHI is a global player and has a worldwide number one

position in the refractories business. The most important

customer industries are iron & steel, cement & lime,

nonferrous metals and glass. The situation in the steel

and industrial sector (RHI's clients) is currently improving.

The outlook for 2010 is promising, the restructurings

undertaken were very successful. Our 12-month target

price: EUR 32.


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RHI MAV 30 MAV 60







Price/Book Ratio 1.93 Historical Earnings Growth -6.35Price/Sales Ratio 0.72 Historical Sales Growth 3.79

BWT

BWT is Europe's leading water technology company.

Recently BWT succesfully entered the filter market (point-

of-use market) for water pitchers, coffee-machines and

other interesting food appliction. We consider BWT as a

quite attractive investment case due to its stable core

business model in combination with the excellent growth

opportunities in the point-of-use segment. Our target

price: EUR 27.3.


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15/17











SEMPERIT

Although Semperit is usually seen as cyclical stock, 40%

of the company's revenues are generated by the division

Sempermed which is producing surgical- and examination

gloves. The increase in sales revenues of the last quarters

clearly proved that this division is able to deliver strongfigures even in a very difficult business environment.

Semperit has a solid balance sheet structure with a net

cash position which should enable the company to think

about acquisitions. Our target price is EUR 38.


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SEMPERIT MAV 30 MAV 60









OMV

OMV currently suffers from low refining margins, but the

current oil price level is favourable. The stock is still

suitable as a "hedge" for the portfolio against possible oil

price increases and is also a good means to diversify into

the commodity sector. The valuation of the stock is

currently quite low, in our opinion, and does not consider

the strong substance of the company. Our target price:

EUR 38.


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OMV MAV 30 MAV 60







Price/Book Ratio 2.04 Historical Earnings Growth -0.75Price/Sales Ratio 1.14 Historical Sales Growth 20.71

KAPSCH TRAFFICCOM

KTC benefits in the long-term from budget constraints of

governments and from the ever rising traffic volume. We

see plenty of projects globally in the long term. The

valuation of the stock is only based on existing projects.

Recently there have been good news from the tender in

South Africa and further smaller projects. Our target price:

EUR 38.


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KAPSCH TRAFFICCOM MAV 30 MAV 60


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Market Cap. (Mil. EUR) 308 Return on Equity 10.37Beta 0.89 Operating Margin 11.0252-Week-High 43 Debt Ratio 33.0752-Week-Low 13.65 Dividend Yield 1.66PE current Year 15.3 Earnings Growth current year -207.9PEG Ratio n.a. Earnings Growth next year 68.73Price/Book Ratio 1.53 Historical Earnings Growth -8.93


austriamicrosystems

austriamicrosystems is a global leader in the design andmanufacture of high performance analog ICs. ams notonly benefits from the ongoing market recovery but alsofrom its recently launched products that set new standards

for various technologies. With its high operating leverageit benefits strongly from an further increase of its capacityutilization. ams produces strong free cash flow that isused for piling up cash and a 25% payout ratio. TargetPrice: CHF 46.


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austriamicrosystems MAV 30 MAV 60

Market Cap. (Mil. EUR) 299 Return on Equity 11.74Beta 0.83 Operating Margin 952-Week-High 11.64 Debt Ratio 55.6452-Week-Low 3.55 Dividend Yield 2.87PE current Year 10.5 Earnings Growth current year -169.34PEG Ratio n.a. Earnings Growth next year 5.81Price/Book Ratio 1.17 Historical Earnings Growth -26.7Price/Sales Ratio 0.57 Historical Sales Growth -0.93

AT&S

New recommendationAT&S currently benefits from the strong growth in themobile internet area. All plants produce at the capacitylimits and further expansion capex is planned. The outlookfor the next quarters looks promising to us. Despite thealready strong share price increase, we see further upsidepotential. Our target price: EUR 16.1.


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AT&S MAV 30 MAV 60


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P 7

Published by Erste Group Bank AG, Neutorgasse 17, 1010 Vienna, Austria. Phone +43 (0)5 0100 - ext.

Erste Group Homepage: www.erstegroup.com On Bloomberg please type: ERBK .

This research report was prepared by Erste Group Bank AG (Erste Group) or its affiliate named herein. The information herein has been obtained from, and anyopinions herein are based upon, sources believed reliable, but we do not represent that it is accurate or complete and it should not be relied upon as such. Allopinions, forecasts and estimates herein reflect our judgement on the date of this report and are subject to change without notice. The report is not intended to bean offer, or the solicitation of any offer, to buy or sell the securities referred to herein. From time to time, Erste Group or its affiliates or the principals or employeesof Erste Group or its affiliates may have a position in the securities referred to herein or hold options, warrants or rights with respect thereto or other securities ofsuch issuers and may make a market or otherwise act as principal in transactions in any of these securities. Erste Group or its affiliates or the principals oremployees of Erste Group or its affiliates may from time to time provide investment banking or consulting services to or serve as a director of a company beingreported on herein. Further information on the securities referred to herein may be obtained from Erste Group upon request. Past performance is not necessarilyindicative for future results and transactions in securities, options or futures can be considered risky. Not all transaction are suitable for every investor. Investorsshould consult their advisor, to make sure that the planned investment fits into their needs and preferences and that the involved risks are fully understood. Thisdocument may not be reproduced, distributed or published without the prior consent of Erste Group. Erste Group Bank AG confirms that it has approved anyinvestment advertisements contained in this material. Erste Group Bank AG is regulated by the Financial Services Authority for the conduct of investment businessin the UK.

Please refer to www.erstegroup.com for the current list of specific disclosures and the breakdown of Erste Groups investment recommendations.

JUL-23-ERSTE GROUP-Recommendation List International Stocks

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