AusGroup: CIMB maintains Underperform TP at $0.42. 2Q11 net profit of $3.1m within expectations. Revenue to climb down in 3Q11 after revenue growth at 88%yoy. Expects improvement in margins after end of two loss-making projects. Believes turnaround is due from improvement in margins, stronger order momentum and rationalizing of fabrication division, but has factored into valuations...
Valuations on 7.5x CY12P/E, 15% disc to 5 yr peer-avg, roughly in-line with Hiap Seng. Counter is up today close to CIMB’s $0.42, possibly due to mgmt guidance on expected stronger order momentum in nxt few quarters.
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