Stock Name: AsiaEntH
Company Name: ASIA ENTERPRISES HOLDING LTD
Research House: NRA Capital
NRA Capital in an April 28 research report says: "ASEH is a steel distributor. It benefits from rising steel prices as its products are sold at spot price and inventory cost is measured at weighted average cost.
"The company derives more than half of its revenue from the marine and offshore sector. It serves rig builders such as Keppel and Sembcorp Marine and other shipyards in the region. The company has been paying consistent dividend payout of 40% since listing.
"Based on the current price, we estimate the yield in 2011 to be 5.1%. The counter is trading at about 8.6 times FY2011 earnings. The flip side is lack of company-specific growth catalysts. By pegging to 1x FY11NAV, we derive a target price of 41 cents, representing 10.9x FY11 PER, 10.3x FY12 PER. OVERWEIGHT (initiating coverage)."
Company Name: ASIA ENTERPRISES HOLDING LTD
Research House: NRA Capital
NRA Capital in an April 28 research report says: "ASEH is a steel distributor. It benefits from rising steel prices as its products are sold at spot price and inventory cost is measured at weighted average cost.
"The company derives more than half of its revenue from the marine and offshore sector. It serves rig builders such as Keppel and Sembcorp Marine and other shipyards in the region. The company has been paying consistent dividend payout of 40% since listing.
"Based on the current price, we estimate the yield in 2011 to be 5.1%. The counter is trading at about 8.6 times FY2011 earnings. The flip side is lack of company-specific growth catalysts. By pegging to 1x FY11NAV, we derive a target price of 41 cents, representing 10.9x FY11 PER, 10.3x FY12 PER. OVERWEIGHT (initiating coverage)."
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