Tiong Seng

Tiong Seng: DBSV downgrades to HOLD with TP cut to $0.20 (from $0.33), after FY13 earnings disappointed as margins collapsed in 2H13 due to higher labour and sub-contracting costs. DBSV expect higher costs to sustain, and lower margins to factor higher direct and operating costs going forward, resulting in lower FY14F earnings (-79%).