Stock Name: CSC
Company Name: CSC HOLDINGS LTD
DMG & Partners Research in a Nov 4 research report says: "CSC's 2QFY12 earnings were above expectations due to a one-off profit contribution (before taxes) of ~$3.7 million arising from the development of an industrial property.
"Stripping away the one-off earnings, pre-tax core construction earnings would be ~$1.7 million, down 67.3% y-o-y despite a 21.6% y-o-y jump in core construction revenue. While order book is strong, standing at $220 million currently (+10% from last quarter), margins may only pick up in 2HFY12 due to intense competition.
"We have raised our FY2012 earnings forecast by 34.5% to $7.1 million, to reflect the recognition of the industrial property development earnings. Lower target price of 11 cents (previously 12 cents), based on 0.8x P/B (previously 0.85x). MAINTAIN NEUTRAL."
Company Name: CSC HOLDINGS LTD
| Research House: DMG | Price Call: HOLD | Target Price: 0.11 |
DMG & Partners Research in a Nov 4 research report says: "CSC's 2QFY12 earnings were above expectations due to a one-off profit contribution (before taxes) of ~$3.7 million arising from the development of an industrial property.
"Stripping away the one-off earnings, pre-tax core construction earnings would be ~$1.7 million, down 67.3% y-o-y despite a 21.6% y-o-y jump in core construction revenue. While order book is strong, standing at $220 million currently (+10% from last quarter), margins may only pick up in 2HFY12 due to intense competition.
"We have raised our FY2012 earnings forecast by 34.5% to $7.1 million, to reflect the recognition of the industrial property development earnings. Lower target price of 11 cents (previously 12 cents), based on 0.8x P/B (previously 0.85x). MAINTAIN NEUTRAL."
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