Stock Name: VizBranz
Company Name: VIZ BRANZ LIMITED
OCBC Investment Research in a Sept 5 research report says: "Viz Branz reported a 15.1% decline in its FY2011 net profit from $14.4 million to $12.2 million as the result of higher raw material costs experienced during the year.
"Although its FY2011 revenue came in within 0.4% of our FY2011 forecast and showed an 8.5% improvement to $165.7 million, a subsequent 15.2% jump in cost of sales dragged its gross profit margins down by four percentage points to 31.7%, causing our bottom line estimates to deviate by 17%.
"Management still managed to declare a final dividend of 0.5 cents to bring the total dividends declared this year to 1.75 cents a share for a dividend yield of 9.6% (FY10: 3.25 cents; 12.5%). Fair value of 27 cents (30 cents previously), which includes a 15% discount to account for its low trading volume. MAINTAIN HOLD."
Company Name: VIZ BRANZ LIMITED
| Research House: OCBC | Price Call: HOLD | Target Price: 0.27 |
OCBC Investment Research in a Sept 5 research report says: "Viz Branz reported a 15.1% decline in its FY2011 net profit from $14.4 million to $12.2 million as the result of higher raw material costs experienced during the year.
"Although its FY2011 revenue came in within 0.4% of our FY2011 forecast and showed an 8.5% improvement to $165.7 million, a subsequent 15.2% jump in cost of sales dragged its gross profit margins down by four percentage points to 31.7%, causing our bottom line estimates to deviate by 17%.
"Management still managed to declare a final dividend of 0.5 cents to bring the total dividends declared this year to 1.75 cents a share for a dividend yield of 9.6% (FY10: 3.25 cents; 12.5%). Fair value of 27 cents (30 cents previously), which includes a 15% discount to account for its low trading volume. MAINTAIN HOLD."
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