Kingsmen Creatives

Kingsmen Creatives: DMG maintains BUY, raises TP to $0.93 based on 7x forward earnings. DMG reported that Group's FY12 results were in line with expectations, and that Kingsmen achieved a record high in its cash balance of $53.1m. For 2013, mgmt expect results to be good, backed by the strong demand for its services and Asia’s growth as an events and theme parks destination. DMG noted that as consumerism in Asia is still relatively healthy, new malls are emerging, existing ones will continue to undergo refurbishment and new international brands will try to penetrate the region. This would benefit Kingsmen’s Interiors business. Group's order book currently stands at SGD81m, which is expected to be recognized in FY13. Dividend of 4¢ declared, translating to 5.1% yield for FY12. Group currently trades at 8.4x forward earnings, or 5.4x ex-cash.