Stock Name: EuYanSang
Company Name: EU YAN SANG INTERNATIONAL LTD
DMG & Partners Research in a May 18 research report says: "The Group reported a 51% y-o-y decline in 3QFY12 PATMI of $5.5 million on the back of a 10% y-o-y growth in revenue to $89.8 million. "9MFY12 PATMI fell 72% y-o-y to $7.2 million, on the back of an 8% y-o-y growth in revenue to $220.3 million, largely due to the $8.8 million impairment loss on its Aussie investment. However earnings are still below expectations accounting for just 45% of our FY2012F. "Going forward we have slashed our earnings by 16-25% for FY2012-2014F to take into account the lower sales contribution from Australia, higher interest expenses and tax rates. Using an unchanged 15x FY13F EPS, we derive a lower target price of 74 cents. Market has reacted negatively to the disappointing results with stock price tumbling 5.3%. At last close, our target price provides an 18% upside. MAINTAIN BUY."
Company Name: EU YAN SANG INTERNATIONAL LTD
| Research House: DMG | Price Call: BUY | Target Price: 0.74 |
DMG & Partners Research in a May 18 research report says: "The Group reported a 51% y-o-y decline in 3QFY12 PATMI of $5.5 million on the back of a 10% y-o-y growth in revenue to $89.8 million. "9MFY12 PATMI fell 72% y-o-y to $7.2 million, on the back of an 8% y-o-y growth in revenue to $220.3 million, largely due to the $8.8 million impairment loss on its Aussie investment. However earnings are still below expectations accounting for just 45% of our FY2012F. "Going forward we have slashed our earnings by 16-25% for FY2012-2014F to take into account the lower sales contribution from Australia, higher interest expenses and tax rates. Using an unchanged 15x FY13F EPS, we derive a lower target price of 74 cents. Market has reacted negatively to the disappointing results with stock price tumbling 5.3%. At last close, our target price provides an 18% upside. MAINTAIN BUY."
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