Karin Technology

Karin Technology: OCBC expects Karin to be a key beneficiary of recent new product launches by Apple, given the latter’s leadership position in the smartphone and tablet space. Karin has the license to sell the full range of Apple products through its In-Smart retail stores in HK, which includes the iPhone 5, iPad Mini and 4th-generation iPad. The limiting growth factors would be supply constraints and low margins on these products. Management is also increasing focus on higher margin network security products and enterprise software solutions to mitigate margin pressure from consumer electronics products. OCBC keeps Hold rating and $0.25 target price, based on 6x FY13 core earnings and highlights attractive dividend yield of 8.2%.