Stock Name: Hiap Seng
Company Name: HIAP SENG ENGINEERING LTD
DBS Vickers Securities in a May 26 research report says: "4Q11 barely broke even with net profit of $0.7 million (-91% y-o-y), blamed to slower revenue recognition and cost overruns on certain projects.
"Revenue declined 43% y-o-y from $57.4 million to $32.4 million. Gross margin fell from 22.5% to 14.5%. This brought FY2011 (FYE Mar) net profit to $8.0 million, 37% short of our estimates largely due to lower-than-expected revenue recognition in 4Q.
"Hiap Seng declared a final dividend of 1 cent, bringing full year dividend payout to 2.0 cents, translating to 4% dividend yield. We expect Hiap Seng to pay 2.5 cents dividend in FY2012/2013.
"We have cut our FY2012 earnings by 29% on slower revenue recognition. Our SOTP target price is lowered to 50 cents, with an implied FY2012 PE of 9.7x. FULLY VALUED."
Company Name: HIAP SENG ENGINEERING LTD
| Research House: DBS Vickers | Price Call: SELL | Target Price: 0.50 |
DBS Vickers Securities in a May 26 research report says: "4Q11 barely broke even with net profit of $0.7 million (-91% y-o-y), blamed to slower revenue recognition and cost overruns on certain projects.
"Revenue declined 43% y-o-y from $57.4 million to $32.4 million. Gross margin fell from 22.5% to 14.5%. This brought FY2011 (FYE Mar) net profit to $8.0 million, 37% short of our estimates largely due to lower-than-expected revenue recognition in 4Q.
"Hiap Seng declared a final dividend of 1 cent, bringing full year dividend payout to 2.0 cents, translating to 4% dividend yield. We expect Hiap Seng to pay 2.5 cents dividend in FY2012/2013.
"We have cut our FY2012 earnings by 29% on slower revenue recognition. Our SOTP target price is lowered to 50 cents, with an implied FY2012 PE of 9.7x. FULLY VALUED."
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