Stock Name: Asiatravel
Company Name: ASIATRAVEL.COM HOLDINGS LTD
DMG & Partners Research in a Dec 5 research report says: "Asiatravel.com recorded a net loss of $0.7 million in 4QFY11, as revenue slid 3.8% y-o-y to $24.6 million, largely due to one-off expenses relating to the cessation of subsidiary's business.
"In the absence of one-off expenses, profitability in FY2012 is likely to improve, even with flat revenue growth. On top of that, there is also the full-year consolidation of FNE's results (Asiatravel recently increased its stake from 19.9% to 50%) for FY2012.
"Asiatravel is an attractive partner for travel operators looking to expand into Asia, in our view, as it has a comprehensive online travel reservation platform and a wide customer base. We are estimating profit of $0.9 million for FY2012. As we roll forward our valuation, our DCF-based target price is 44 cents. MAINTAIN BUY."
Company Name: ASIATRAVEL.COM HOLDINGS LTD
| Research House: DMG | Price Call: BUY | Target Price: 0.44 |
DMG & Partners Research in a Dec 5 research report says: "Asiatravel.com recorded a net loss of $0.7 million in 4QFY11, as revenue slid 3.8% y-o-y to $24.6 million, largely due to one-off expenses relating to the cessation of subsidiary's business.
"In the absence of one-off expenses, profitability in FY2012 is likely to improve, even with flat revenue growth. On top of that, there is also the full-year consolidation of FNE's results (Asiatravel recently increased its stake from 19.9% to 50%) for FY2012.
"Asiatravel is an attractive partner for travel operators looking to expand into Asia, in our view, as it has a comprehensive online travel reservation platform and a wide customer base. We are estimating profit of $0.9 million for FY2012. As we roll forward our valuation, our DCF-based target price is 44 cents. MAINTAIN BUY."
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