Stock Name: TechOil&Gas
Company Name: TECHNICS OIL & GAS LIMITED
AmFraser Research in a Jan 9 research report says: "Technics announced that it intends to spin off two subsidiaries, 51%-owned Norr Systems and 55%-owned Wecom Engineering, on the Gretai Securities Market in Taiwan as the Norr and Wecom Group.
"We believe that the new Norr and Wecom Group should be able to secure a market valuation comfortably north of 10x, thereby unlocking value for existing shareholders. We estimate the spinoff to occur in the first half of calendar year 2013, and we lower our earnings for Technics correspondingly.
"We continue to expect an 8 cents dividend this FY, which at the current price translates into a yield of 9.2%. However, we cut our FY2013F/2014F dividends to 6 cents on the lower expected earnings. Fair value of $1.22. MAINTAIN BUY."
Company Name: TECHNICS OIL & GAS LIMITED
| Research House: AmFraser | Price Call: BUY | Target Price: 1.22 |
AmFraser Research in a Jan 9 research report says: "Technics announced that it intends to spin off two subsidiaries, 51%-owned Norr Systems and 55%-owned Wecom Engineering, on the Gretai Securities Market in Taiwan as the Norr and Wecom Group.
"We believe that the new Norr and Wecom Group should be able to secure a market valuation comfortably north of 10x, thereby unlocking value for existing shareholders. We estimate the spinoff to occur in the first half of calendar year 2013, and we lower our earnings for Technics correspondingly.
"We continue to expect an 8 cents dividend this FY, which at the current price translates into a yield of 9.2%. However, we cut our FY2013F/2014F dividends to 6 cents on the lower expected earnings. Fair value of $1.22. MAINTAIN BUY."
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