Stock Name: Broadway
Company Name: BROADWAY INDUSTRIAL GROUP LTD
CIMB in a Sept 12 research report asy: "Our latest channel checks suggest that HDD OEMs and semiconductor equipment makers have been lowering their expectations and orders for suppliers have been pushed back.
"Such negative data points prompt us to cut our FY2011-2013 profit forecasts for Broadway by 6-11%. We also apply the average of its low-end 5-year P/BV to derive a new target price of 37 cents (from 47 cents, 0.8x P/BV, 5-year average), given a deteriorating macro outlook.
"In view of its slowing business and the macro uncertainties, the group is likely to reduce its full-year capex budget of $70 million. Although we see limited near-term catalysts, we believe its share price could be supported by its low P/BV and decent dividend yields of 5.8%. MAINTAIN NEUTRAL."
Company Name: BROADWAY INDUSTRIAL GROUP LTD
| Research House: CIMB | Price Call: HOLD | Target Price: 0.37 |
CIMB in a Sept 12 research report asy: "Our latest channel checks suggest that HDD OEMs and semiconductor equipment makers have been lowering their expectations and orders for suppliers have been pushed back.
"Such negative data points prompt us to cut our FY2011-2013 profit forecasts for Broadway by 6-11%. We also apply the average of its low-end 5-year P/BV to derive a new target price of 37 cents (from 47 cents, 0.8x P/BV, 5-year average), given a deteriorating macro outlook.
"In view of its slowing business and the macro uncertainties, the group is likely to reduce its full-year capex budget of $70 million. Although we see limited near-term catalysts, we believe its share price could be supported by its low P/BV and decent dividend yields of 5.8%. MAINTAIN NEUTRAL."
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