CLSA starts Kingboard Chemical (Hong Kong Stock Code 0148) at Buy, pegs SOTP-based target price at HK$56.90, which implies only 11X FY11 P/E, 1.6X P/B. The house says while Kingboard Laminate (Hong Kong Stock Code 1888) remains attractive business,the “market has yet to fully value Kingboard Chemical’s other businesses” – PCB, chemicals, property development. As return-on-invested-capital on these businesses forecast to rise, CLSA believes re-rating will happen and the stock’s current 31% discount to NAV will narrow.