Stock Name: Broadway
Company Name: BROADWAY INDUSTRIAL GROUP LTD
DBS Vickers Securities in a Nov 3 research report says: "BWAY recorded 3Q11 net loss of $9.9 million as a result of forex losses of $13.2 million, of which $16.5 million are unrealized MTM losses from hedging of USD/CNY and USD/SGD.
"Excluding forex losses, operating profit would be $3.3 million, which is below our $4 million estimate due to higher operating costs in China, weaker than expected non-HDD business (operating loss of S$1.1m) and start up expenses.
"But BWAY looks like it could gain market share from Thailand floods... For a start, it has extra capacity in Wuxi to capture all customers' requirements before its Thailand plant resumes in March 2012. The current situation is still volatile and it remains to be seen if the spillover would flow to BWAY. Target price lowered slightly to 32 cents based on 0.6x PB. MAINTAIN HOLD."
Company Name: BROADWAY INDUSTRIAL GROUP LTD
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 0.32 |
DBS Vickers Securities in a Nov 3 research report says: "BWAY recorded 3Q11 net loss of $9.9 million as a result of forex losses of $13.2 million, of which $16.5 million are unrealized MTM losses from hedging of USD/CNY and USD/SGD.
"Excluding forex losses, operating profit would be $3.3 million, which is below our $4 million estimate due to higher operating costs in China, weaker than expected non-HDD business (operating loss of S$1.1m) and start up expenses.
"But BWAY looks like it could gain market share from Thailand floods... For a start, it has extra capacity in Wuxi to capture all customers' requirements before its Thailand plant resumes in March 2012. The current situation is still volatile and it remains to be seen if the spillover would flow to BWAY. Target price lowered slightly to 32 cents based on 0.6x PB. MAINTAIN HOLD."
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