Ryobi Kiso Holdings rated 'increase exposure' by SIAS

Stock Name: Ryobi Kiso
Company Name: RYOBI KISO HOLDINGS LTD.

Research House: SIAS

Price Call: BUY

Target Price: 0.215

SIAS Research in a March 16 research report says: "Ryobi announced the acquisition of 70% stake in two Australian piling and geotechnical services companies, Compile Australia Pty Ltd and Compile-Ryobi Australia Pty Ltd, for a total consideration of approximately A$2.8 million ($3.68 million).

"These strategic acquisitions will allow Ryobi to enter the Western Australia market and help achieve its regionalization plan. For now, we see these acquisitions as footholds in a new market.

"We maintain our forecasts and valuation on Ryobi pending further developments from these companies. Intrinsic value of 21.5 cents. MAINTAIN INCREASE EXPOSURE."

Ryobi Kiso Holdings rated 'increase exposure' by SIAS

Stock Name: Ryobi Kiso
Company Name: RYOBI KISO HOLDINGS LTD.

Research House: SIAS

Price Call: BUY

Target Price: 0.23

SIAS Research in a Sept 28 research report says: "Ryobi Kiso Holdings Ltd (Ryobi) recently entered into an in-principle agreement to develop factories in Vietnam, at the Ascendas-Protrade Singapore Tech Park.

"This deal allows Ryobi to enter into the industrial development space in Vietnam, while working together with Ascendas. This project shows that Ryobi is executing its plan of raising overseas revenue contribution. Stiff competition in Singapore is unlikely to stop the company from growing.

"With this project, Ryobi has enlarged its footprint in Vietnam, raising the potential for more local project wins. Despite the recent market turmoil, Ryobi's share price has risen by 5.1% since our last update on Aug 31. Intrinsic value of 23 cents. MAINTAIN INCREASE EXPOSURE."

Ryobi Kiso Holdings rated 'increase exposure' by SIAS

Stock Name: Ryobi Kiso
Company Name: RYOBI KISO HOLDINGS LTD.

Research House: SIAS

Price Call: BUY

Target Price: 0.23

SIAS Research in an Aug 31 research report says: "Full year revenue grew by 2% to $123.3 million, while PATMI fell to $7.8 million versus $27.4 million in FY2010. The decline was due to stiff competition and higher operating costs.

"Quarterly net margin improved by 1% point q-o-q to 3.6% in 4Q FY2011. It bought back 2.2% of its free float (shares) over January - June 2011 and has declared a dividend of 0.6 cents for the year, translating to a yield of 4.3% as of Aug 29.

"Ryobi's order book for the past few quarters has been relatively stable, with a net level of $78.1 million at the end of 4Q FY2011. We expect Ryobi to earn revenue and PATMI of $132.5 million and $9.1 million respectively in FY2012F. Based on a price of 13.8 cents, Ryobi trades at 0.9x price to NAV. Intrinsic value of 23 cents. MAINTAIN INCREASE EXPOSURE."