Kingsmen Creatives

Kingsmen Creatives: OSK DMG noted the management's swift steps to prevent a recurrence of the recent fraud at two of the Company's subsidiaries, that may have an overall financial impact estimated at $1.5m (9% of FY11 PAT). Given the healthy net cash balance, DMG stated that the fraud is unlikely to affect the Company's operations. Maintaining the good outlook, the mgmt highlighted that it's business as usual, with a full pipeline of projects upcoming. Thematic and scenic construction activities are expected in Asia over the next few years, fuelled by a growing Asian middle class population. After lowering the earnings due to the fraud, DMG maintains BUY with TP of $0.79 based on forward 6x P/E (ex-cash). Reiterated the stable and attractive dividends of 5.3%.