Stock Name: KingsmenC
Company Name: KINGSMEN CREATIVES LTD
Research House: DMG
DMG & Partners Securities in a May 10 research report says: "Kingsmen achieved revenue of $36.5 million (-21.9% y-o-y) and PATMI of $1.4 million (-39.7% y-o-y) in 1Q11. Included in 1Q10 was revenue from the completion of works for the Shanghai World Expo and Universal Studios.
"1Q11 gross margins improved to 29.9%, vs 1Q10's 26.3%, as margins from work done for Universal Studios (USS) were generally low. Kingsmen has a strong balance sheet with net cash position of $25.9 million. Earnings growth over the next two years is likely to be modest, at less than 5% per annum.
"At present levels, it is trading at 6.7x FY11 P/E, which is attractive compared to its peers which are trading at an average of 8.4x. Target price of 76 cents, pegged to 9x FY11F earnings. MAINTAIN BUY."
Company Name: KINGSMEN CREATIVES LTD
Research House: DMG
DMG & Partners Securities in a May 10 research report says: "Kingsmen achieved revenue of $36.5 million (-21.9% y-o-y) and PATMI of $1.4 million (-39.7% y-o-y) in 1Q11. Included in 1Q10 was revenue from the completion of works for the Shanghai World Expo and Universal Studios.
"1Q11 gross margins improved to 29.9%, vs 1Q10's 26.3%, as margins from work done for Universal Studios (USS) were generally low. Kingsmen has a strong balance sheet with net cash position of $25.9 million. Earnings growth over the next two years is likely to be modest, at less than 5% per annum.
"At present levels, it is trading at 6.7x FY11 P/E, which is attractive compared to its peers which are trading at an average of 8.4x. Target price of 76 cents, pegged to 9x FY11F earnings. MAINTAIN BUY."
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