TPV Technology downgraded to 'neutral' by CIMB

Stock Name: TPV
Company Name: TPV TECHNOLOGY LIMITED

Research House: CIMB

Price Call: HOLD

Target Price: 0.58

CIMB in an Aug 25 research report says: "2Q11 net profit of US$28 million (-36% y-o-y) is about 21% below consensus and our forecasts as higher-than-expected GP margins were pulled down by lower-than-expected sales and a higher opex ratio.

"1H11 net profit of US$70 million forms 40% consensus and 39% of our full-year forecasts. We cut our FY2011-2013 profit forecasts by 12-20% to assumer lower LCD-TV sales and margins. We also apply the low end of its P/BV valuations back in FY08 when its earnings slipped to derive our new target price of 58 cents (down from 95 cents, 0.95x P/BV) in view of its near-term unexciting outlook.

"Although the stock is not expensive, we see little positive news flow for a re-rating. DOWNGRADE TO NEUTRAL."

TPV Technology rated 'outperform' by CIMB

Stock Name: TPV
Company Name: TPV TECHNOLOGY LIMITED

Research House: CIMB

Price Call: BUY

Target Price: 0.95

CIMB in a May 27 research report says: "1Q11 net profit of US$42 million (+5% y-o-y) was in line with consensus and our estimates, forming 24% of consensus and our FY2011 forecasts. Sales grew 13% y-o-y to US$2.7 billion, lifted by higher shipments of both PC monitors and LCD TVs.

"EBITDA margins contracted 1.0% pt y-o-y to 1.5%, as a result of a jump in the opex ratio. Net debt improved to 0.02x from 0.15x at end-December 2010. We leave our FY2011-2013 profit forecasts intact and target price of 95 cents, based on 0.95x P/BV. This already pegs TPV at the low end of its 5-year band for its challenging near-term prospects.

"Nevertheless, stock catalysts are still expected from: (1) a gradual recovery in its earnings with the recent improvement in panel prices; and (2) a recovery of the LCD TV market. MAINTAIN OUTPERFORM."