Stock Name: Broadway
Company Name: BROADWAY INDUSTRIAL GROUP LTD
CIMB in a June 22 research report says: "Our discussions with Broadway suggest that its Hitachi Global Storage Technologies (HGST) business was weak in the June quarter. Management also concurred that its HGST's business may be affected by HGST's ongoing merger exercise with Western Digital (WD).
"On the other hand, business from its other HDD customer, Seagate, and non-HDD components has been fairly stable. The foam packaging business continues to improve qoq, thanks largely to capacity expansion and the closure of loss-making Xinjiang operations. We are lowering our FY2011-2013 profit forecasts by 13-14%.
"We have also applied its 5-year historical P/BV average of 0.8x to derive our new target price of 47 cents, down from 61 cents previously (1x CY11 P/BV, slight premium to its historical average). MAINTAIN NEUTRAL."
Company Name: BROADWAY INDUSTRIAL GROUP LTD
| Research House: CIMB | Price Call: HOLD | Target Price: 0.47 |
CIMB in a June 22 research report says: "Our discussions with Broadway suggest that its Hitachi Global Storage Technologies (HGST) business was weak in the June quarter. Management also concurred that its HGST's business may be affected by HGST's ongoing merger exercise with Western Digital (WD).
"On the other hand, business from its other HDD customer, Seagate, and non-HDD components has been fairly stable. The foam packaging business continues to improve qoq, thanks largely to capacity expansion and the closure of loss-making Xinjiang operations. We are lowering our FY2011-2013 profit forecasts by 13-14%.
"We have also applied its 5-year historical P/BV average of 0.8x to derive our new target price of 47 cents, down from 61 cents previously (1x CY11 P/BV, slight premium to its historical average). MAINTAIN NEUTRAL."
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