Stock Name: Mewah
Company Name: MEWAH INTERNATIONAL INC.
Research House: DBS Vickers
DBS Vickers Securities in a May 12 research report says: "Mewah reported 1Q11 net profit of US$17.0 million (-.3% y-o-y, -52.8% q-o-q), which was below our expectations of US$22 million. 1Q11 volumes are seasonally the lowest due to palm oil harvesting pattern and absence of significant festivities.
"1Q11 profit was dragged by lower sales volume (-10.8% y-o-y, -13.8% q-o-q) especially from Africa and Middle East where volumes shrank due to political instability during the quarter. Balance sheet remains strong with debt to equity ratio standing at 0.74x, representing a slight increase from 4Q11 at 0.64x due to higher commodity prices.
"We expect 2Q11 volumes to recover, as the political situation in Africa and the Middle East normalizes. Target price of $1.23, which offers c.26% upside from current levels. MAINTAIN BUY."
Company Name: MEWAH INTERNATIONAL INC.
Research House: DBS Vickers
DBS Vickers Securities in a May 12 research report says: "Mewah reported 1Q11 net profit of US$17.0 million (-.3% y-o-y, -52.8% q-o-q), which was below our expectations of US$22 million. 1Q11 volumes are seasonally the lowest due to palm oil harvesting pattern and absence of significant festivities.
"1Q11 profit was dragged by lower sales volume (-10.8% y-o-y, -13.8% q-o-q) especially from Africa and Middle East where volumes shrank due to political instability during the quarter. Balance sheet remains strong with debt to equity ratio standing at 0.74x, representing a slight increase from 4Q11 at 0.64x due to higher commodity prices.
"We expect 2Q11 volumes to recover, as the political situation in Africa and the Middle East normalizes. Target price of $1.23, which offers c.26% upside from current levels. MAINTAIN BUY."
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