Excerpts from analysts' reports
S&P expects stronger 2H for Smartflex
Analyst: Janice Chong
Smart card IC modules being produced in a cleanroom of Smartflex Holdings in the industrial estate of Ubi in Singapore.
NextInsight file photoStronger 2H13. We understand orders have normalized in July. Management is upbeat on its outlook for 2H13 amid the anticipated demand recovery and greater focus in its higher margin products i.e. smart cards for the banking sector and the dual interface smart cards.
DBS Vickers says: Position into stocks that offer recovery & yield – Venture Corp & Jaya
Jaya Holdings CEO Venkatraman Sheshashayee.
NextInsight file photo
STI’s pullback to 3180 last Friday is in line with our view that the index will likely turn choppy heading towards September with near-term support at 3170.
The lack of earnings upward revision in the just concluded 2Q result season and the shadow of QE tapering come September is likely to contain STI at/below 13.9x (average) 12-mth forward PE in the weeks/month ahead.
Past this choppy period in the near-term, we see STI rising to the 13.9x (average) FY14F PE at 3390 by year-end. We also maintain our view that the correction triggered by QE tapering talk back in May has ended at 3066.
Jaya Holdings CEO Venkatraman Sheshashayee. NextInsight file photo
Unless fresh macro uncertainties strike, we do not expect a re-test of this level.
Among the SMCs, we look for recovery names that offer yield as well such as Venture Corp & Jaya.
Venture Corp shares offer a 7% yield and 2H is expected to show improvement with new customer contributions.
Our analyst is optimistic of Jaya’s transformation into a ship charterer from a builder.
Our analyst is optimistic of Jaya’s transformation into a ship charterer from a builder.
Revenue visibility is improving as the group has secured several chartering contracts in recent months. Stock offers 5.7% forward yield.
Recent story: JAYA: Stock Surged On Strong Earnings And Surprise Dividend
Recent story: JAYA: Stock Surged On Strong Earnings And Surprise Dividend
S&P expects stronger 2H for Smartflex
Analyst: Janice Chong
Smart card IC modules being produced in a cleanroom of Smartflex Holdings in the industrial estate of Ubi in Singapore. NextInsight file photoStronger 2H13. We understand orders have normalized in July. Management is upbeat on its outlook for 2H13 amid the anticipated demand recovery and greater focus in its higher margin products i.e. smart cards for the banking sector and the dual interface smart cards.
In all, plant utilization in 2H13 is expected to recover to ~70%.
We cut our net profit forecast for 2013 to USD0.1 mln (USD1.0 mln) and 2014 to USD1.2 mln (from USD1.5 mln) after lowering our revenue and margins assumptions.
Our projections do not factor in potential contribution from its new JV and dual-interface smartcard.
Overall, we see net profit recovering in 2H13, before rising to USD1.2 mln in 2014.
Recent story: SMARTFLEX attracts 3 investors, including SgCarMart co-founder & father
We cut our net profit forecast for 2013 to USD0.1 mln (USD1.0 mln) and 2014 to USD1.2 mln (from USD1.5 mln) after lowering our revenue and margins assumptions.
Our projections do not factor in potential contribution from its new JV and dual-interface smartcard.
Overall, we see net profit recovering in 2H13, before rising to USD1.2 mln in 2014.
Recent story: SMARTFLEX attracts 3 investors, including SgCarMart co-founder & father
Comments