Stock Name: CombWill 100
Company Name: COMBINE WILL INTL HLDGS LTD
Phillip Securities Research in a Dec 9 research report says: "Gross profit margin for 3Q11 came in at 11.2%; 2Q11 came in at 12.1%. Nine quarters before these 2 quarters, margins were between 13.7% and 18.8% (average 16.3%). There was only one bad quarter before these nine - 4Q08. That was 10.8%.
"While we had only one bad quarter in 4Q08, we are already having two bad quarters in 1Q11 and 2Q11. Worse is that management is guiding "increased inflation", "weaker demand", and "sharp increase of labour cost" for the coming 12 months.
"Briefly, we have shrunk our revenue estimates by between 4% to 25% (average 16.7%); gross margins by between 1.1%age to 5.3%age points (average 3.1%age points); and, postponed capex from 2011 and 2015 to 2013 and 2020 respectively. Fair value is now calculated to be $2.25. This is lower than our previous forecast of $2.95 by 24%. MAINTAIN HOLD."
Company Name: COMBINE WILL INTL HLDGS LTD
| Research House: Phillip Securities | Price Call: HOLD | Target Price: 2.25 |
Phillip Securities Research in a Dec 9 research report says: "Gross profit margin for 3Q11 came in at 11.2%; 2Q11 came in at 12.1%. Nine quarters before these 2 quarters, margins were between 13.7% and 18.8% (average 16.3%). There was only one bad quarter before these nine - 4Q08. That was 10.8%.
"While we had only one bad quarter in 4Q08, we are already having two bad quarters in 1Q11 and 2Q11. Worse is that management is guiding "increased inflation", "weaker demand", and "sharp increase of labour cost" for the coming 12 months.
"Briefly, we have shrunk our revenue estimates by between 4% to 25% (average 16.7%); gross margins by between 1.1%age to 5.3%age points (average 3.1%age points); and, postponed capex from 2011 and 2015 to 2013 and 2020 respectively. Fair value is now calculated to be $2.25. This is lower than our previous forecast of $2.95 by 24%. MAINTAIN HOLD."
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