ArmStrong

ArmStrong: 2Q12 core profit met weak consensus forecast. An earnings recovery is underway, though this is slower than expected. CIMB see few catalysts to turn positive in the near term. 1H12 forms 40% of house FY12 forecast and 57% of consensus. CIMB cut FY12-14 EPS to incorporate lower sales and margins, downgrade to Underperform from Neutral with $0.23 TP as believe its gradual recovery has been priced in.