Stock Name: TiongWoon
Company Name: TIONG WOON CORP HOLDING LTD
DMG & Partners Research in an Aug 25 research report says: "Tiong Woon (TWC) plunged deeper into the red in 4QFY11, from a loss of $0.2 million in 3QFY11 and a profit of $2.8 million in 4QFY10 to a loss of $0.7 million.
"Consequently, we have cut our FY2012 earnings forecasts by 90.4% to $1.6 million, on the back of lower turnover and gross profit margins. A dividend of 0.4 cents per share was declared for FY2011 (yield of 1.5%), unchanged from the previous year. While TWC's balance sheet remains strong, there is a lack of near term catalyst.
"In addition, with concerns of another economic slowdown looming, there might be more project delays going forward. We have lowered our fair value to 19 cents, based on 0.3x FY12 P/B (the trough level TWC traded at during the last global financial crisis). MAINTAIN SELL."
Company Name: TIONG WOON CORP HOLDING LTD
| Research House: DMG | Price Call: SELL | Target Price: 0.19 |
DMG & Partners Research in an Aug 25 research report says: "Tiong Woon (TWC) plunged deeper into the red in 4QFY11, from a loss of $0.2 million in 3QFY11 and a profit of $2.8 million in 4QFY10 to a loss of $0.7 million.
"Consequently, we have cut our FY2012 earnings forecasts by 90.4% to $1.6 million, on the back of lower turnover and gross profit margins. A dividend of 0.4 cents per share was declared for FY2011 (yield of 1.5%), unchanged from the previous year. While TWC's balance sheet remains strong, there is a lack of near term catalyst.
"In addition, with concerns of another economic slowdown looming, there might be more project delays going forward. We have lowered our fair value to 19 cents, based on 0.3x FY12 P/B (the trough level TWC traded at during the last global financial crisis). MAINTAIN SELL."
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