Swing Media Technology Group rated 'buy' by DMG

Stock Name: Swing Media
Company Name: SWING MEDIA TECHNOLOGY GRP LTD

Research House: DMG

Price Call: BUY

Target Price: 0.244

DMG & Partners Research in a May 17 research report says: "Swing Media has just completed the acquisition of Shanghai Hui Yang’s solar installation business in China for a consideration of RMB6 million.

"Though we expect this to take place earlier, the fact that the share price traded below the company’s par value restricted the group from issuing new shares in order to complete this purchase until the recent capital reorganisation exercise.

"Going forward, we favour the group’s new solar installation business as China’s domestic consumption for solar energy is expected to be robust following the drastic decline in solar panel prices. A higher target price of 24.4 cents based on 0.5x (industry average) FY13 P/B. MAINTAIN BUY."

Swing Media Technology Group rated 'buy' by DMG

Stock Name: Swing Media
Company Name: SWING MEDIA TECHNOLOGY GRP LTD

Research House: DMG

Price Call: BUY

Target Price: 0.23

DMG & Partners Securities in a Nov 2 research report says: "Swing Media announced that it had formally entered into contract with PetroChina in carrying out turn-key solar panels installations for 100 of its petrol stations.

"Commencing from 2H FY12, this will contribute positively to the group's FY2012 and FY2013 earnings. The upcoming $9.3 million placement will provide Swing Media with the necessary working capital for the project, allowing it to tap on the booming Chinese solar market.

"Given (1) falling solar-panel prices and (2) increasing domestic demand, we believe the new business will provide a kicker to its earnings. Unchanged target price of 23 cents based on 0.5x industry average P/B. BUY"