Stock Name: Mun Siong
Company Name: MUN SIONG ENGINEERING LIMITED
DMG & Partners Research in an Aug 3 research report says: "Mun Siong Engineering's (MSE) 2Q11 earnings was below expectations (-59.5% y-o-y to $2.2 million), due to lower than estimated project revenue and gross margins.
"We cut our FY2011 and FY2012 earnings by 43.2% and 32.9% respectively, on lower revenue and gross margins estimates. On a positive note, MSE's order book has grown and its focus on growing its maintenance revenue is bearing fruit, with maintenance revenue growth likely to be >50% y-o-y.
"MSE's cash balance of $18.1 million also allows it to do earnings accretive acquisitions and the company has commenced casting its nets for overseas projects. Based on DCF methodology, we derive a new target price of 16.5 cents, down from 25 cents previously. DOWNGRADE TO NEUTRAL."
Company Name: MUN SIONG ENGINEERING LIMITED
| Research House: DMG | Price Call: HOLD | Target Price: 0.165 |
DMG & Partners Research in an Aug 3 research report says: "Mun Siong Engineering's (MSE) 2Q11 earnings was below expectations (-59.5% y-o-y to $2.2 million), due to lower than estimated project revenue and gross margins.
"We cut our FY2011 and FY2012 earnings by 43.2% and 32.9% respectively, on lower revenue and gross margins estimates. On a positive note, MSE's order book has grown and its focus on growing its maintenance revenue is bearing fruit, with maintenance revenue growth likely to be >50% y-o-y.
"MSE's cash balance of $18.1 million also allows it to do earnings accretive acquisitions and the company has commenced casting its nets for overseas projects. Based on DCF methodology, we derive a new target price of 16.5 cents, down from 25 cents previously. DOWNGRADE TO NEUTRAL."
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