Stock Name: Lian Beng
Company Name: LIAN BENG GROUP LTD
Maybank-Kim Eng Research in a Mar 14 research report says: "We estimate that the spin-off and listing of Lian Beng's subsidiaries in Taiwan could propel its valuation from 62 cents to 71 cents.
"To recap, Lian Beng has proposed to spin off two subsidiaries and list them on the Taiwan Stock Exchange. We expect Lian Beng to raise about $29 million from the expected sale of 30% stake in the subsidiaries, based on a PER valuation of 11.5x and FY2012 forecast earnings of $9.3 million.
"Buy now and be rewarded by the imminent Taiwan listing of Lian Beng's subsidiaries and potential special dividends of up to 1.6 cents per share. This is in addition to the stock's attractive ex-net cash FY12 PER of 1.7x, and a dividend yield that is already nearly 5.0%. MAINTAIN BUY."
Company Name: LIAN BENG GROUP LTD
| Research House: Kim Eng | Price Call: BUY | Target Price: 0.71 |
Maybank-Kim Eng Research in a Mar 14 research report says: "We estimate that the spin-off and listing of Lian Beng's subsidiaries in Taiwan could propel its valuation from 62 cents to 71 cents.
"To recap, Lian Beng has proposed to spin off two subsidiaries and list them on the Taiwan Stock Exchange. We expect Lian Beng to raise about $29 million from the expected sale of 30% stake in the subsidiaries, based on a PER valuation of 11.5x and FY2012 forecast earnings of $9.3 million.
"Buy now and be rewarded by the imminent Taiwan listing of Lian Beng's subsidiaries and potential special dividends of up to 1.6 cents per share. This is in addition to the stock's attractive ex-net cash FY12 PER of 1.7x, and a dividend yield that is already nearly 5.0%. MAINTAIN BUY."
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