Hiap Seng: +17% at $0.76 on strong volume. DBS reiterates Buy with $0.94 target. Says huge PE discount of 28-50% to peers is unwarranted, given i) steady earnings delivery over past one year, ii) expected net cash of 15cts by end FY10, iii) sustainable dividend payout of at least 4.5cts/yr, translating to ~7% yield, one of the highest among industrial players…
Expects Hiap Seng to play catch up with closest peer, PEC, which has seen strong run up since mid-August. Notes current orderbook stands at $166m, while order momentum should pick up, underpinned by demand from the Middle East for gas compressor packages.
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