Broadway

Broadway: will release FY12 results today after the market close. DMG expects the headline numbers to look good, generating $25m in net profit, thanks to oneoff items such as insurance claims and forex gains. Operationally speaking, the house believes Broadway should still report a loss as a result of the steep downturn of its hard disk drive (HDD) business. While the new Chongqing plant as well as the foam business may bring in long-term performance, it believes that it is not enough to save the group from reporting losses even into 1H13. Adding to the woes, there is chance for the group to scrape its final dividend payout in view of the bleak HDD outlook. DMG keeps at Sell wtih TP $0.265.