CSC Holdings rated 'neutral' by DMG

Stock Name: CSC
Company Name: CSC HOLDINGS LTD

Research House: DMG

Price Call: HOLD

Target Price: 0.11

DMG & Partners Research in a Nov 4 research report says: "CSC's 2QFY12 earnings were above expectations due to a one-off profit contribution (before taxes) of ~$3.7 million arising from the development of an industrial property.

"Stripping away the one-off earnings, pre-tax core construction earnings would be ~$1.7 million, down 67.3% y-o-y despite a 21.6% y-o-y jump in core construction revenue. While order book is strong, standing at $220 million currently (+10% from last quarter), margins may only pick up in 2HFY12 due to intense competition.

"We have raised our FY2012 earnings forecast by 34.5% to $7.1 million, to reflect the recognition of the industrial property development earnings. Lower target price of 11 cents (previously 12 cents), based on 0.8x P/B (previously 0.85x). MAINTAIN NEUTRAL."

CSC Holdings rated 'buy' by DMG

Stock Name: CSC
Company Name: CSC HOLDINGS LTD
Research House: DMG

DMG & Partners Securities in a May 20 research report says: "CSC's 4QFY11 earnings disappointed, coming in at a loss of $4.9 million, due to a $7.9 million impairment loss made on the Changi MotorSports Hub project receivable.

"We have lowered our FY2012 earnings by 37.6%, to reflect the slower than expected pick up in gross margins as well as higher expenses. A final dividend of 0.1 cent was declared, bringing total FY2011 payout to 0.5 cents (3.6% yield). Outlook remains positive as CSC is likely to secure more projects from the MRT Downtown Line (DTL) Stage 3 with its strong track record.

"We lower target price of 19 cents, based on 12x FY12/FY13 blended P/E, the level it was trading at in 2005 just before its earnings recovery. MAINTAIN BUY."