Stock Name: SMRT
Company Name: SMRT CORPORATION LTD
Phillip Securities Research in a May 2 research report says: "Despite revenue growth of 9%, SMRT reported a 26% decline in net income for the year. 4QFY12 profits were negatively impacted by a $21.7 million impairment charge on goodwill for its Bus business.
"After adjusting for this one off impairment charge, profits in the quarter was marginally above our expectations of $31 million. CAPEX guidance of $500 million in FY2013E was significantly higher than our expectations and approximately 5 times average levels for the past 10 years.
"With the high levels of cash outflow expected in the year, free cash flow is likely to turn negative in FY2013E. Final dividend was cut to 5.70 cents per share, resulting in full year payout of 7.45 cents. Target price of $1.33. MAINTAIN SELL."
Company Name: SMRT CORPORATION LTD
| Research House: Phillip Securities | Price Call: SELL | Target Price: 1.33 |
Phillip Securities Research in a May 2 research report says: "Despite revenue growth of 9%, SMRT reported a 26% decline in net income for the year. 4QFY12 profits were negatively impacted by a $21.7 million impairment charge on goodwill for its Bus business.
"After adjusting for this one off impairment charge, profits in the quarter was marginally above our expectations of $31 million. CAPEX guidance of $500 million in FY2013E was significantly higher than our expectations and approximately 5 times average levels for the past 10 years.
"With the high levels of cash outflow expected in the year, free cash flow is likely to turn negative in FY2013E. Final dividend was cut to 5.70 cents per share, resulting in full year payout of 7.45 cents. Target price of $1.33. MAINTAIN SELL."
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