Stock Name: Kian Ann
Company Name: KIAN ANN ENGINEERING LTD
DMG & Partners Research in a Sept 2 research report says: "4QFY11 earnings jumped 27.7% y-o-y, reaching $4.3 million, on the back of lower costs, higher revenue and other income.
"We now expect FY2012 and FY2013 earnings to hit $19.1 million (+13.8% y-o-y) and $21.1 million (+10.7% y-o-y) respectively, on the back of sustained strong demand. Trading at 4.8x FY12 earnings, we believe the stock is undervalued when compared against its construction-related and heavy equipment peers at ~7x blended FY2011/FY2012 earnings.
"Based on a target P/E of 7x FY12 earnings (its 5-year historical average), we value KA at a target price of 31 cents, implying a 47.6% upside. An interim and final dividend of 1.1 cents was declared, higher than the 1 cent paid for last year. This translates to a decent yield of 5.1%. BUY"
Company Name: KIAN ANN ENGINEERING LTD
| Research House: DMG | Price Call: BUY | Target Price: 0.31 |
DMG & Partners Research in a Sept 2 research report says: "4QFY11 earnings jumped 27.7% y-o-y, reaching $4.3 million, on the back of lower costs, higher revenue and other income.
"We now expect FY2012 and FY2013 earnings to hit $19.1 million (+13.8% y-o-y) and $21.1 million (+10.7% y-o-y) respectively, on the back of sustained strong demand. Trading at 4.8x FY12 earnings, we believe the stock is undervalued when compared against its construction-related and heavy equipment peers at ~7x blended FY2011/FY2012 earnings.
"Based on a target P/E of 7x FY12 earnings (its 5-year historical average), we value KA at a target price of 31 cents, implying a 47.6% upside. An interim and final dividend of 1.1 cents was declared, higher than the 1 cent paid for last year. This translates to a decent yield of 5.1%. BUY"
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