Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED
DMG & Partners Research in a Sep 26 research report says. "Swiber boosted its order book to a record high level of US$932 million upon securing a US$155 million EPIC project in South Asia.
"The encouraging news came two weeks after the fund raising announcement, as the group planned to issue convertible preferred stock aiming to finance its working capital needs. While top line growth is anticipated to sustain with more order wins, falling gross margin and rising financing costs remain our key concerns.
"Following the order win, we have raised FY2011 and FY2012 PATMI estimates by 16.9% and 14.6% respectively. Unchanged target price of 50 cents as the group needs cost discipline. Despite that revenue has grown four folds from FY2007 to FY2011F, core PATMI is expected to stay flat during the same period. MAINTAIN NEUTRAL."
Company Name: SWIBER HOLDINGS LIMITED
| Research House: DMG | Price Call: HOLD | Target Price: 0.50 |
DMG & Partners Research in a Sep 26 research report says. "Swiber boosted its order book to a record high level of US$932 million upon securing a US$155 million EPIC project in South Asia.
"The encouraging news came two weeks after the fund raising announcement, as the group planned to issue convertible preferred stock aiming to finance its working capital needs. While top line growth is anticipated to sustain with more order wins, falling gross margin and rising financing costs remain our key concerns.
"Following the order win, we have raised FY2011 and FY2012 PATMI estimates by 16.9% and 14.6% respectively. Unchanged target price of 50 cents as the group needs cost discipline. Despite that revenue has grown four folds from FY2007 to FY2011F, core PATMI is expected to stay flat during the same period. MAINTAIN NEUTRAL."
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