Stock Name: Ziwo
Company Name: ZIWO HOLDINGS LTD.
Phillip Securities Research in a Sept 7 research report says: "Revenue decline 2.1% y-o-y is attributed to two main reasons: (a) tighter control over credit sales and (b) a new competitor in 30D TFY who used to be a major customer.
"We are leaving our FY2011 forecast unchanged, but we are cutting FY2012 revenue and net profit by 28.9% and 28.3%, mainly due to the removal of contribution from the 4 additional lines of 30D TFY. Which we had originally assumed to take place in 2012.
"In 2010, Ziwo gave out RMB0.02 dividend per share. However we are not factoring any dividend for FY11 as we think the company may want to conserve cash for its phase 3 expansion. A revised target price of 15 cents, pegged to 3x blended FY11/12 earnings. DOWNGRADE TO HOLD."
Company Name: ZIWO HOLDINGS LTD.
| Research House: Phillip Securities | Price Call: BUY | Target Price: 0.15 |
Phillip Securities Research in a Sept 7 research report says: "Revenue decline 2.1% y-o-y is attributed to two main reasons: (a) tighter control over credit sales and (b) a new competitor in 30D TFY who used to be a major customer.
"We are leaving our FY2011 forecast unchanged, but we are cutting FY2012 revenue and net profit by 28.9% and 28.3%, mainly due to the removal of contribution from the 4 additional lines of 30D TFY. Which we had originally assumed to take place in 2012.
"In 2010, Ziwo gave out RMB0.02 dividend per share. However we are not factoring any dividend for FY11 as we think the company may want to conserve cash for its phase 3 expansion. A revised target price of 15 cents, pegged to 3x blended FY11/12 earnings. DOWNGRADE TO HOLD."
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