Stock Name: HG Metal
Company Name: HG METAL MANUFACTURING LTD
NRA Capital in a Nov 29 research report says: "Revenue in 4QFY11 jumped 76% y-o-y (-2% q-o-q) to $66.1 million due to higher sales volume. Operating profit improved by about 350% to $1.7 million from a year ago, but declined 27% sequentially.
"Thanks to $1.5 million contribution from associate, HG Metal ("HGM") recorded $1.4 million PATMI, compared to $10.2 million loss last year arising from massive inventory write-down. HGM declared 0.6 cents of interim dividend, beating our estimate of 0.25 cents. We adjust FY2012-2013 earnings 20% lower.
"We keep our valuation method unchanged, pegging at 1x FY12NTA and thus deriving target price of 13.8 cents (prev 15.1 cents). Potential return is 69% (62% capital appreciation and 7% dividend yield). MAINTAIN OVERWEIGHT."
Company Name: HG METAL MANUFACTURING LTD
| Research House: NRA Capital | Price Call: BUY | Target Price: 0.138 |
NRA Capital in a Nov 29 research report says: "Revenue in 4QFY11 jumped 76% y-o-y (-2% q-o-q) to $66.1 million due to higher sales volume. Operating profit improved by about 350% to $1.7 million from a year ago, but declined 27% sequentially.
"Thanks to $1.5 million contribution from associate, HG Metal ("HGM") recorded $1.4 million PATMI, compared to $10.2 million loss last year arising from massive inventory write-down. HGM declared 0.6 cents of interim dividend, beating our estimate of 0.25 cents. We adjust FY2012-2013 earnings 20% lower.
"We keep our valuation method unchanged, pegging at 1x FY12NTA and thus deriving target price of 13.8 cents (prev 15.1 cents). Potential return is 69% (62% capital appreciation and 7% dividend yield). MAINTAIN OVERWEIGHT."
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