Thursday, September 30, 2010


Rotary: CIMB downgrades from outperform to neutral, reducing TP to $0.95 from $1.17, based on 8.5X CY12 PE. Notes tt grp has not secured any significant orders for FY10, way off their expectations of $250m for FY10….

With order-win disappointments and no clear re-rating catalysts in near term, CIMB has reduced earnings estimates for FY11-12 by 14-23% respectively. Notes tt grp still has outstanding orders (order book at 926.1m) which could provide earnings visibility till FY12, however valuations appear rich at 9X CY11 PE and believes that positives have mostly been priced in.

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