Stock Name: ECS
Company Name: ECS HOLDINGS LIMITED
OCBC Investment Research in a May 18 research report says: "ECS reported a mixed set of 1Q12 results, with revenue meeting our expectations but PATMI came in below due largely to weaker-than-expected gross margin. Revenue increased 7.1% y-o-y to $901.6 million, forming 23.2% of our FY2012 estimates. "PATMI slumped 41.0% to $6.2 million. Excluding forex and other exceptional items, we estimate that core earnings would have declined 36.1% to $6.6 million, or 15.2% of our full-year projections. Sequentially, revenue fell 2.5% and net profit declined 31.6%. We cut our FY2012 core PATMI forecasts by 19.9% (FY13 by 17.5%) given the weak 1Q12 results and continued uncertainties in the macroeconomic environment. "Our fair value declines from 69 cents to 55.5 cents. The stock is trading at 5.3x FY12F EPS, or half a standard deviation below its 5-year average forward core PER. MAINTAIN BUY."
Company Name: ECS HOLDINGS LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 0.555 |
OCBC Investment Research in a May 18 research report says: "ECS reported a mixed set of 1Q12 results, with revenue meeting our expectations but PATMI came in below due largely to weaker-than-expected gross margin. Revenue increased 7.1% y-o-y to $901.6 million, forming 23.2% of our FY2012 estimates. "PATMI slumped 41.0% to $6.2 million. Excluding forex and other exceptional items, we estimate that core earnings would have declined 36.1% to $6.6 million, or 15.2% of our full-year projections. Sequentially, revenue fell 2.5% and net profit declined 31.6%. We cut our FY2012 core PATMI forecasts by 19.9% (FY13 by 17.5%) given the weak 1Q12 results and continued uncertainties in the macroeconomic environment. "Our fair value declines from 69 cents to 55.5 cents. The stock is trading at 5.3x FY12F EPS, or half a standard deviation below its 5-year average forward core PER. MAINTAIN BUY."
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