FJ Benjamin

FJ Benjamin: FY12 missed estimates. Full-year results came below expectations, with sales of $393.2m, and net profit of $13.5m, making up 85% of Kim Eng estimates. The group offered a final dividend of 1c, as opposed to 2cts as of FY11; this is attributed to aggressive expansion and necessary increases in working capital. House lower estimates for FY13-15 by 14-17% to account for higher operating expenses. Downgrade the stock to a HOLD on the basis of lower than expected margins and expensive valuations.