Stock Name: Armstrong
Company Name: ARMSTRONG INDUSTRIAL CORP LTD
Kim Eng Research in an Aug 19 research report says: "As the global supply chain gets back on its feet following the March 2011 Japanese earthquake, Armstrong should get a reprieve in 2H11.
"But given the continued weakness in China auto sales and the US$, the recovery is not expected to erase 1H11's 57% profit decline and y-o-y growth could remain in the negative territory. However, we believe the stock has factored in the poor operating environment.
"At 7x FY12F earnings and almost 8% yield (based on $0.02 final dividend per share). Target price of 29 cents as we roll over to FY12 earnings, still at 8x PER. We believe the poor operating environment has already been factored into the share price. UPGRADE TO HOLD."
Company Name: ARMSTRONG INDUSTRIAL CORP LTD
| Research House: Kim Eng | Price Call: HOLD | Target Price: 0.29 |
Kim Eng Research in an Aug 19 research report says: "As the global supply chain gets back on its feet following the March 2011 Japanese earthquake, Armstrong should get a reprieve in 2H11.
"But given the continued weakness in China auto sales and the US$, the recovery is not expected to erase 1H11's 57% profit decline and y-o-y growth could remain in the negative territory. However, we believe the stock has factored in the poor operating environment.
"At 7x FY12F earnings and almost 8% yield (based on $0.02 final dividend per share). Target price of 29 cents as we roll over to FY12 earnings, still at 8x PER. We believe the poor operating environment has already been factored into the share price. UPGRADE TO HOLD."
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