Stock Name: SIA Engg
Company Name: SIA ENGINEERING CO LTD
Phillip Securities Research in a July 27 research report says: "SIAEC reported a marginal decline in revenue and profits of $277.6 million and $68.1 million respectively. 1QFY12 forms 24% of our full year estimates. SIAEC has a strong cash balance of $645 million as of end June 11.
"If we adjust this cash balance by the recent dividend payment of c.$265 million, the company still has strong cash holdings of $380 million. If our free cash flow estimates for the year is met, SIAEC's cash account would build up to beyond $500 million once again, thus offering substantial room for further capital distributions.
"We value the stock of SIAEC using the DCF model to derive our target price of $5.01. Incorporating forecasted dividends of 34 cents, we expect total returns of 28.7% from the current market price. MAINTAIN BUY."
Company Name: SIA ENGINEERING CO LTD
| Research House: Phillip Securities | Price Call: BUY | Target Price: 5.01 |
Phillip Securities Research in a July 27 research report says: "SIAEC reported a marginal decline in revenue and profits of $277.6 million and $68.1 million respectively. 1QFY12 forms 24% of our full year estimates. SIAEC has a strong cash balance of $645 million as of end June 11.
"If we adjust this cash balance by the recent dividend payment of c.$265 million, the company still has strong cash holdings of $380 million. If our free cash flow estimates for the year is met, SIAEC's cash account would build up to beyond $500 million once again, thus offering substantial room for further capital distributions.
"We value the stock of SIAEC using the DCF model to derive our target price of $5.01. Incorporating forecasted dividends of 34 cents, we expect total returns of 28.7% from the current market price. MAINTAIN BUY."
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