Stock Name: Amtek
Company Name: AMTEK ENGINEERING LTD
CIMB in a Feb 14 research report says: "2Q12 core profit is 22% below our expectation (1H at 46%) and below consensus on lower-than-expected sales. Sales declined 15% q-o-q to US$155 million. All product segments suffered except automotive components.
"Reported net profit of US$8 million (-39% y-o-y, -11% q-o-q) was above expectations with the aid of higher-than-expected GP margins, forex and fair-value gains from derivatives, and gains from the disposal of a subsidiary. Amtek continued to generate positive free cash flows, with net gearing remaining low at 0.2x despite the payment of final dividends during the quarter.
"We cut FY2012-2014 EPS by 6-10% to factor this in. A higher target price of 79 cents, now on 1.8x P/BV (from 1.2x) as peer valuations have expanded. MAINTAIN NEUTRAL."
Company Name: AMTEK ENGINEERING LTD
| Research House: CIMB | Price Call: HOLD | Target Price: 0.79 |
CIMB in a Feb 14 research report says: "2Q12 core profit is 22% below our expectation (1H at 46%) and below consensus on lower-than-expected sales. Sales declined 15% q-o-q to US$155 million. All product segments suffered except automotive components.
"Reported net profit of US$8 million (-39% y-o-y, -11% q-o-q) was above expectations with the aid of higher-than-expected GP margins, forex and fair-value gains from derivatives, and gains from the disposal of a subsidiary. Amtek continued to generate positive free cash flows, with net gearing remaining low at 0.2x despite the payment of final dividends during the quarter.
"We cut FY2012-2014 EPS by 6-10% to factor this in. A higher target price of 79 cents, now on 1.8x P/BV (from 1.2x) as peer valuations have expanded. MAINTAIN NEUTRAL."
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