Stock Name: Armstrong
Company Name: ARMSTRONG INDUSTRIAL CORP LTD
Kim Eng Research in a Nov 14 research report says: "Armstrong's 3Q11 results were hard hit by a weak US$, mark-to-market losses on forward forex contracts and higher material costs.
"We expect the next two quarters to remain weak due to the perfect storm of earthquake and flooding; 4Q11 in particular could be marked by asset impairment losses due to the Thai flooding. However, operating cash flow stayed strong and Armstrong could still declare a dividend, albeit much reduced from last year's $0.04 per share.
"We cut our earnings forecasts by 47% for FY2011 and 27% for FY2012, and switch to book value valuation. Assuming 0.9x FY12F BVPS of $0.217, our target price is reduced to 19 cents. The stock is trading at around BVPS of $0.195 and almost 5% dividend yield. MAINTAIN HOLD."
Company Name: ARMSTRONG INDUSTRIAL CORP LTD
| Research House: Kim Eng | Price Call: HOLD | Target Price: 0.19 |
Kim Eng Research in a Nov 14 research report says: "Armstrong's 3Q11 results were hard hit by a weak US$, mark-to-market losses on forward forex contracts and higher material costs.
"We expect the next two quarters to remain weak due to the perfect storm of earthquake and flooding; 4Q11 in particular could be marked by asset impairment losses due to the Thai flooding. However, operating cash flow stayed strong and Armstrong could still declare a dividend, albeit much reduced from last year's $0.04 per share.
"We cut our earnings forecasts by 47% for FY2011 and 27% for FY2012, and switch to book value valuation. Assuming 0.9x FY12F BVPS of $0.217, our target price is reduced to 19 cents. The stock is trading at around BVPS of $0.195 and almost 5% dividend yield. MAINTAIN HOLD."
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