HL Asia: 3Q11 revenue -13% YoY, with lower sales across all segments. Net Profit +35% yoy, boosted by a S$26m gain from the sale of the Karimun quarry.
DMG downgrades to Neutral from Buy, TP $2.01 from $2.38. Note that weak earnings from Xinfei losses and lower FY11/12 NP forecasts by 22%/10%.
CS maintain Neutral, TP $2.30 from $2.40. Note that China headwinds to persist, cut forecasts marginally on lower pricing assumption at Xinfei. Grp Trades at 8x P/E, in line with the China white goods peers at 8x and above the diesel engine manufacturing peer Yuchai at 7x.
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