Excerpts from latest analyst reports

CIMB says new shareholder could mark shift in China Minzhong's strategy

Analysts: Kenneth Ng CFA & Lee Mou Hua

minzhong_chart2.13
China Minzhong shares tumbled hard in 2011 and recovered strongly in 2H2012. Chart: FT.com

Indofood Sukses Makmur is now a major shareholder after its proposed subscription of 98m new shares at S$0.915 each.

We think this could mark the start of a shift in Minzhong’s strategy and also alleviate corporate-governance concerns.

The new shares will dilute our FY13 EPS by 15%. We are cutting our FY13-14 EPS by 8-15% to factor in the dilution.

Our target price (4x  CY14 P/E, sector average) dips accordingly. 

Benefits could accrue, earliest in FY14. The S$89m raised  will  strengthen Minzhong’s ability to pay dividends this year. We keep our Outperform on the back of this possibility.

minzhong_cimb2.13


Recent story: KING WAN, ASL MARINE, CHINA MINZHONG: What analysts now say

 



NRA Capital raises Serial System's fair value to 17 cents


derek_agm12
CEO Derek Goh speaking to investors at last year's AGM.

Analyst: Jacky Lee

S$5.4m positive free cash flow generated in 4Q12 due mainly to improved inventory turnover.

As a result, net gearing improved from 58% as at end-Sep quarter to 54%.

As expected, the board declared a lower 0.3 cts final dividend but this  is still a decent 3.9% yield (including the 0.22 cts interim dividend already paid out).

We maintain our FY13-14 net profit forecast and introduce our FY15 forecast.

Nevertheless, our fair value has lifted by 3 cts to S$0.17 as we roll forward our base from 8x FY13 PER to FY14.

Given Serial is still gaining market share from its competitors with decent dividend payout, we maintain Overweight.

Click here for the NRA report.

Recent story: SERIAL SYSTEM: Once again, a decent dividend payout

 


Share Prices

Counter NameLastChange
AEM Holdings3.730-
Avi-Tech Electronics0.275-
Best World1.780-0.010
Broadway Ind0.118-0.001
China Sunsine0.405-0.005
DISA0.003-
Food Empire0.6600.010
Fortress Minerals0.330-0.015
Geo Energy Res0.3650.010
Golden Energy0.775-
GSS Energy0.046-0.001
InnoTek0.470-0.005
ISDN Holdings0.400-0.005
ISOTeam0.1000.005
IX Biopharma0.1280.001
Jiutian Chemical0.075-0.001
KSH Holdings0.350-0.005
Leader Env0.0560.003
Medtecs Intl0.142-0.005
Meta Health0.0260.001
Nordic Group0.475-
Oxley Holdings0.1490.004
REX International0.230-0.005
Riverstone0.6300.005
Sinostar PEC0.190-0.001
Southern Alliance Mining0.380-0.025
Straco Corp.0.405-
Sunpower Group0.255-
The Trendlines0.094-
Totm Technologies0.105-0.005
UG Healthcare0.195-0.004
Uni-Asia Group0.805-0.010
Wilmar Intl4.1000.010
Yangzijiang Shipbldg1.4300.040

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