Stock Name: Broadway
Company Name: BROADWAY INDUSTRIAL GROUP LTD
CIMB in an Apr 30 research report says: "Although 1Q12 net profit forms just 11% of consensus and our FY12 forecasts, results are in line as we expect earnings to accelerate in 2H12. As expected, Broadway returned to profitability with a core net profit of $3.1 million for 1Q12. This was within consensus and our expectations.
"Including forex and fair-value gains from financial derivatives, net profit surged 68% y-o-y to $15.2 million. Sales grew 14% y-o-y and 39% q-o-q with all segments contributing. Gross margins, however, contracted to 10.1% from 13.0% a year ago due to its product mix and higher operating costs as a result of transferring some work from Thailand to China after flooding.
"We make no changes to our FY2012-2014 forecasts. Target price of 55 cents (based on 1x P/BV, within its 5-year average). TRADING BUY."
Company Name: BROADWAY INDUSTRIAL GROUP LTD
| Research House: CIMB | Price Call: BUY | Target Price: 0.55 |
CIMB in an Apr 30 research report says: "Although 1Q12 net profit forms just 11% of consensus and our FY12 forecasts, results are in line as we expect earnings to accelerate in 2H12. As expected, Broadway returned to profitability with a core net profit of $3.1 million for 1Q12. This was within consensus and our expectations.
"Including forex and fair-value gains from financial derivatives, net profit surged 68% y-o-y to $15.2 million. Sales grew 14% y-o-y and 39% q-o-q with all segments contributing. Gross margins, however, contracted to 10.1% from 13.0% a year ago due to its product mix and higher operating costs as a result of transferring some work from Thailand to China after flooding.
"We make no changes to our FY2012-2014 forecasts. Target price of 55 cents (based on 1x P/BV, within its 5-year average). TRADING BUY."
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