Stock Name: ECS
Company Name: ECS HOLDINGS LIMITED
OCBC Investment Research in a July 15 research report says: "ECS Holdings (ECS) is a leading Information and Communications Technology (ICT) products and services provider with a strong presence in six regional countries.
"We expect ECS's earnings momentum to gain traction moving forward, as it had recently clinched new distributorship agreements with Dell and also nationwide distribution rights for Apple's iPad and iPhone in China. We value ECS based on a PER methodology and ascribe its historical median PER of 7x to our FY11F core EPS forecast.
"This represents a 25% discount to its peers' CY11 PER of 9.3x, which we think is justifiable due to its low free float (10.3%) and trading liquidity. Nevertheless, our fair value estimate of $1.08 still implies an attractive upside potential of 41.2%, supported by a healthy prospective dividend yield of 5.0%. BUY (initiating coverage)."
Company Name: ECS HOLDINGS LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 1.08 |
OCBC Investment Research in a July 15 research report says: "ECS Holdings (ECS) is a leading Information and Communications Technology (ICT) products and services provider with a strong presence in six regional countries.
"We expect ECS's earnings momentum to gain traction moving forward, as it had recently clinched new distributorship agreements with Dell and also nationwide distribution rights for Apple's iPad and iPhone in China. We value ECS based on a PER methodology and ascribe its historical median PER of 7x to our FY11F core EPS forecast.
"This represents a 25% discount to its peers' CY11 PER of 9.3x, which we think is justifiable due to its low free float (10.3%) and trading liquidity. Nevertheless, our fair value estimate of $1.08 still implies an attractive upside potential of 41.2%, supported by a healthy prospective dividend yield of 5.0%. BUY (initiating coverage)."
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