ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Additional Notes to DAILY, for TD November 9, 2010

PSE TICKER SYMBOL COAT

CHEMREZ TECHNOLOGIES, INC
LAST PRICE Php2.50 CHANGE % 0.00% 52 WEEK RANGE Php2.02-2.64
Out Shares 1,321,889,472 Par Value Php1.00 Free Float 33.00% Board Lot 1,000
2009 EPS Php0.36 Trailing PE 6.9X Book Value Php2.83 OUTLOOK BUY [LT]

The Company reported a 24.6% growth in sales for Q3 2010 y-o-y, pulling the nine-month total rising by almost the same pace,
25.6% to php4.522B. Higher interest expense for this year narrowed down profit margins to 8.5% over the 9-month period from
10.3% a year ago. Third quarter margins alone, however widened to 8.2% from 5.2% in the same quarter last year. Profits for the
latest three month period reached php124.612M, nearly double last year's figure. This managed to pull the nine-month total into
positive year-on-year change to php387.5M, 4.2% higher. At the end of the first semester, profits were down -14.8%. The
Company has practically no leverage, with current ratio at 7.55, even higher than end-December's 6.25. Only 17% of assets are
financed by debt, up from 2009's 11% on account of the firm's borrowings. COAT's revenue mix is composed of sales of
oleochemicals (58%), resins (38%) and powder coating (4%). About a quarter of the increase in Q3 revenues were contributed by
exports.

Four sessions ago, the stock broke above an almost month-long downtrend which saw the price fall from a high of php2.63 to
php2.40, a level barely above its long-term support defined by the 150-pd EMA (php2.38.) The actual break occurred as it moved
from php2.43 to php2.45, marking the latter as the near-term support. Immediate resistance is presented by the 200pd LRL at
php2.52, giving the issue a narrow trading band. Even as STO indicates the relative high position of the stock, other indicators
point to more room for an upside, with a potential break of the immediate resistance line for an initial test of the php2.63 top.
Applying current trading PE to its annualized EPS, fair price for the counter is at least php2.70 over the short-term. Using the
broad industry sector PE as of last week, the long term proposition runs up to between php4.50-5.00, levels last seen in the first
half of 2007.

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE
AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE
INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON
AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF
THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR
INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED.
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