Tai Sin Electric

Tai Sin Electric: UOB Kay Hian initiates coverage with a Buy call and $0.435 TP. The house notes that despite being in a highly competitive industry, Tai Sin has emerged as a market leader that has consistently outperformed its peers. Profitable for the last 10 years, Tai Sin has an excellent growth record with net profit growing strongly at a CAGR of 26.7% in FY02-FY13. DPS also grew at a CAGR of 14.7% over the same period. Given its attractive dividend yield (6.7%), solid balance sheet and consistent earnings track record, believe Tai Sin offers good value at a fair price. At its current valuation of 6.3x trailing 12M PE, Tai Sin is trading at a 32% discount to its regional (ex China & Taiwan) peers’ average trailing 12M PE of 9.1x. Given its attractive dividend yield, superior ROE, solid balance sheet (6% net debt/asset) and consistent earnings track record, believe Tai Sin offers good value at a fair price