Technics Oil & Gas rated 'buy' by AmFraser

Stock Name: TechOil&Gas
Company Name: TECHNICS OIL & GAS LIMITED

Research House: AmFraser

Price Call: BUY

Target Price: 1.22

AmFraser Research in an Apr 12 research report says: "Revenue up 41% q-o-q (+42% y-o-y) to $49.8 million, with 1H revenue meeting 55% of our forecast.'' Margin rose 0.9ppt q-o-q (fell 1.2ppt y-o-y) to 37.5%, which was expected due to higher proportion of contract engineering work.

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Technics Oil & Gas rated 'increase exposure' by SIAS

Stock Name: TechOil&Gas
Company Name: TECHNICS OIL & GAS LIMITED

Research House: SIAS

Price Call: BUY

Target Price: 1.35

SIAS Research in a Feb 15 research report says: "Technics Oil & Gas Limited (Technics) posted steady 1Q FY2012 results with revenue and PATMI rising 58% and 41% y-o-y to $35.3 million and $4.3 million respectively.

"Its performance was largely in line with expectations and 1Q revenue and PATMI (which are seasonally weaker) formed 23.7% and 20.5% of our FY2012 forecasts. Technics' last quarter PATMI ($2.6 million) was dragged lower by the reclassification of Norr Systems' leases and we are glad to see the recovery of profitability this quarter.

"Going forward, we expect Technics to secure more projects from countries such as Indonesia, Malaysia, Vietnam and the Middle East region. We also like Technics' move to spin off its subsidiaries on the Gretai Securities Market of Taiwan which had a higher valuation for O&G counters. Intrinsic value of $1.35. MAINTAIN INCREASE EXPOSURE."

Technics Oil & Gas rated 'buy' by AmFraser

Stock Name: TechOil&Gas
Company Name: TECHNICS OIL & GAS LIMITED

Research House: AmFraser

Price Call: BUY

Target Price: 1.22

AmFraser Research in a Jan 9 research report says: "Technics announced that it intends to spin off two subsidiaries, 51%-owned Norr Systems and 55%-owned Wecom Engineering, on the Gretai Securities Market in Taiwan as the Norr and Wecom Group.

"We believe that the new Norr and Wecom Group should be able to secure a market valuation comfortably north of 10x, thereby unlocking value for existing shareholders. We estimate the spinoff to occur in the first half of calendar year 2013, and we lower our earnings for Technics correspondingly.

"We continue to expect an 8 cents dividend this FY, which at the current price translates into a yield of 9.2%. However, we cut our FY2013F/2014F dividends to 6 cents on the lower expected earnings. Fair value of $1.22. MAINTAIN BUY."