Stock Name: KingsmenC
Company Name: KINGSMEN CREATIVES LTD
AmFraser Research in a May 2 research report says: "Kingsmen has been able to maintain net margins of over 6.0% in the past 5 years including the year of the global financial crisis, through improving cost efficiencies and being selective on jobs they take on.
"We like such focused growth strategies that do not comprise on margins. This is partly why we expect similar margins in the future (5.8-6.0%). We expect an EPS CAGR of 7.75% (till FY2014), suggesting a PEG ratio of 0.95 (an indication of undervaluation). Stock has run up 13% in the past two months but there is still room to go.
"Our fair value of 78 cents based on 8.5x FY12 EPS of 91.6 cents and a 6.1% dividend yield represents a total upside of 21.7%. Kingsmen’s orderbook as at Feb 24, 2012 is $106 million, up 26% from Feb 21, 2011—suggesting a far better start to 2012. It currently trades at only 7.4x forward PER. MAINTAIN BUY."
Company Name: KINGSMEN CREATIVES LTD
| Research House: AmFraser | Price Call: BUY | Target Price: 0.78 |
AmFraser Research in a May 2 research report says: "Kingsmen has been able to maintain net margins of over 6.0% in the past 5 years including the year of the global financial crisis, through improving cost efficiencies and being selective on jobs they take on.
"We like such focused growth strategies that do not comprise on margins. This is partly why we expect similar margins in the future (5.8-6.0%). We expect an EPS CAGR of 7.75% (till FY2014), suggesting a PEG ratio of 0.95 (an indication of undervaluation). Stock has run up 13% in the past two months but there is still room to go.
"Our fair value of 78 cents based on 8.5x FY12 EPS of 91.6 cents and a 6.1% dividend yield represents a total upside of 21.7%. Kingsmen’s orderbook as at Feb 24, 2012 is $106 million, up 26% from Feb 21, 2011—suggesting a far better start to 2012. It currently trades at only 7.4x forward PER. MAINTAIN BUY."
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