Stock Name: Mun Siong
Company Name: MUN SIONG ENGINEERING LIMITED
DMG & Partners Research in a Nov 4 research report says: "Mun Siong Engineering's (MSE) 3Q11 earnings was within our expectations (+3.1% y-o-y to $1.9 million), largely due to higher project and maintenance revenue (+16.6% y-o-y).
"With 9M11 earnings making up 73.2% of our FY2011 estimates, we are maintaining our FY2011 and FY2012 earnings forecasts. MSE's focus on growing its maintenance revenue is bearing fruit, with maintenance revenue growth likely to be >50% y-o-y.
"MSE's cash balance of $17.1 million also allows it to do earnings accretive acquisitions and the company has commenced casting its nets for overseas projects in Vietnam and Saudi Arabia. Based on DCF methodology, we derive a new target price of $0.118, down from $0.165 previously. MAINTAIN NEUTRAL."
Company Name: MUN SIONG ENGINEERING LIMITED
| Research House: DMG | Price Call: HOLD | Target Price: 0.118 |
DMG & Partners Research in a Nov 4 research report says: "Mun Siong Engineering's (MSE) 3Q11 earnings was within our expectations (+3.1% y-o-y to $1.9 million), largely due to higher project and maintenance revenue (+16.6% y-o-y).
"With 9M11 earnings making up 73.2% of our FY2011 estimates, we are maintaining our FY2011 and FY2012 earnings forecasts. MSE's focus on growing its maintenance revenue is bearing fruit, with maintenance revenue growth likely to be >50% y-o-y.
"MSE's cash balance of $17.1 million also allows it to do earnings accretive acquisitions and the company has commenced casting its nets for overseas projects in Vietnam and Saudi Arabia. Based on DCF methodology, we derive a new target price of $0.118, down from $0.165 previously. MAINTAIN NEUTRAL."
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