Stock Name: YHI
Company Name: YHI INTERNATIONAL LIMITED
DBS Vickers Securities in a Feb 24 research report says: "FY2011 earnings of $38.2 million were in line with our estimate of $37.9 million. Full year revenue growth of 10.2% was driven by the manufacturing business, with the Malaysian plant operating at full capacity to fulfill mainly ODM orders from Europe. Dividend payout was 30% at 1.96 cents, which yields 6.8% currently. YHI trades at compelling valuations of 4.5x FY12F PE. Earnings risk for the stock is low. In our view, YHI's buy/sell model for distribution has little downside to margin as it sells through on a cost-plus basis. Furthermore, distribution dominates its revenue mix at c.70% vs c.30% for manufacturing. Hence, the risk of significant margin pressure from high aluminium prices is low. Target price of 52 cents based on 8x FY12F PE. MAINTAIN BUY.
Company Name: YHI INTERNATIONAL LIMITED
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.52 |
DBS Vickers Securities in a Feb 24 research report says: "FY2011 earnings of $38.2 million were in line with our estimate of $37.9 million. Full year revenue growth of 10.2% was driven by the manufacturing business, with the Malaysian plant operating at full capacity to fulfill mainly ODM orders from Europe. Dividend payout was 30% at 1.96 cents, which yields 6.8% currently. YHI trades at compelling valuations of 4.5x FY12F PE. Earnings risk for the stock is low. In our view, YHI's buy/sell model for distribution has little downside to margin as it sells through on a cost-plus basis. Furthermore, distribution dominates its revenue mix at c.70% vs c.30% for manufacturing. Hence, the risk of significant margin pressure from high aluminium prices is low. Target price of 52 cents based on 8x FY12F PE. MAINTAIN BUY.
