Stock Name: CWT
Company Name: CWT LIMITED
DMG & Partners Securities in a June 3 research report says: "CWT sold its 13,547sqm Jinshan chemical warehouse in Shanghai to Cache Logistics Trust for RMB71 million and a gain of $6.9 million.
"We have factored the gains into our earnings and lowered our non-vessel operating common carrier and Logistics segments' contribution estimates. Consequently, our FY2011 and FY2012 earnings forecasts are reduced by 3.4% and 12.9% respectively.
"We expect start-up costs from its expansion into the commodity logistics and commodity futures brokerage business to remain a drag on earnings for the next few quarters but remain positive over CWT's long term prospects with its continued business development initiatives.
"Target price of $1.40, based on 20.8x FY11 earnings (a 20% discount to global peers' 7-year historical average). MAINTAIN BUY."
Company Name: CWT LIMITED
| Research House: DMG | Price Call: BUY | Target Price: 1.40 |
DMG & Partners Securities in a June 3 research report says: "CWT sold its 13,547sqm Jinshan chemical warehouse in Shanghai to Cache Logistics Trust for RMB71 million and a gain of $6.9 million.
"We have factored the gains into our earnings and lowered our non-vessel operating common carrier and Logistics segments' contribution estimates. Consequently, our FY2011 and FY2012 earnings forecasts are reduced by 3.4% and 12.9% respectively.
"We expect start-up costs from its expansion into the commodity logistics and commodity futures brokerage business to remain a drag on earnings for the next few quarters but remain positive over CWT's long term prospects with its continued business development initiatives.
"Target price of $1.40, based on 20.8x FY11 earnings (a 20% discount to global peers' 7-year historical average). MAINTAIN BUY."
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