Stock Name: HG Metal
Company Name: HG METAL MANUFACTURING LTD
NRA Capital in a July 19 research report says: "HG Metal ("HGM") is a leading steel stockist in Singapore. HGM suffered a long stretch of losses in FY2009 and FY2010, but that is finally over. It staged a slower recovery than its peers, partly due to internal restructuring and the fact it was over leveraged. It reported a remarkable set of results in 1HFY11.
"We view the risk reward ratio for the counter to be attractive, given (1) stock is trading at historical lows, (2) attractive 5.5x FY11 PER and 5.4x FY12 PER, (3) 30% discount to book value, and (4) long term synergy from OCS.
"Our target price of 15 cents is based on 1x FY12 NTA, representing an upside potential of 58%. OVERWEIGHT (initiating coverage)."
Company Name: HG METAL MANUFACTURING LTD
| Research House: NRA Capital | Price Call: BUY | Target Price: 0.15 |
NRA Capital in a July 19 research report says: "HG Metal ("HGM") is a leading steel stockist in Singapore. HGM suffered a long stretch of losses in FY2009 and FY2010, but that is finally over. It staged a slower recovery than its peers, partly due to internal restructuring and the fact it was over leveraged. It reported a remarkable set of results in 1HFY11.
"We view the risk reward ratio for the counter to be attractive, given (1) stock is trading at historical lows, (2) attractive 5.5x FY11 PER and 5.4x FY12 PER, (3) 30% discount to book value, and (4) long term synergy from OCS.
"Our target price of 15 cents is based on 1x FY12 NTA, representing an upside potential of 58%. OVERWEIGHT (initiating coverage)."
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