TiongWoon - Tiong Woon target cut to $0.45 by Credit Suisse

Stock Name: TiongWoon
Company Name: TIONG WOON CORP HOLDING LTD
Research House: Credit Suisse

Credit Suisse cuts Tiong Woon (T06.SG) target price to $0.45 from $0.80 after lowering fiscal FY11-12 earnings estimates by 31.5%-29.9% to reflect lower margin assumptions, says Dow Jones.



“Near term, we expect the structural overcapacity in lower tonnage capacity cranes in Singapore to dampen margins for the heavy lift and haulage segment, even as Tiong Woon targets further overseas growth drivers,” says Credit Suisse, keeping its Neutral call.



Research house says visibility for crane company remains weak but notes earnings decline has likely bottomed out. Net profit for FY10 ended June down 43% at $23.9 million on lower revenue. Shares flat at $0.40.