Straco

Straco: Reported FY12 results. No major surprises at the operating level with the co delivering revenue and profit growth of about 20%. The pleasant surprise was a dividend which total 1.25c vs 0.75c in 2011 comprising a final dividend of 0.75c and a special dividend of 0.5c. Grp’s balance sheet healthy with net cash of $95.9mn or about 11.3c per share. Going forward, grp expect business to remain robust in view of the fast-growing domestic tourism market in China and the government’s initiatives to boost the tourism industry. NRA Capital note that organic growth in this business is usually about 10% and house comforted by mgt's positive forward looking statement of robust growth and remains in its Stock Picks Yield list. House raise the fair value using dcf and cash calculation but the stock like Cerebos is likely to see slow and steady gains supported by its reasonable yields and strong cash backing.