Swing Media

Swing Media: OSK DMG has a BUY, with TP of $0.23; House notes that the recent dip in share price following the placement presents a good buying opportunity. The counter is currently trading at an attractive 0.2x FY13P/B. China is forecasted to unseat Germany as the world’s largest solar market, as newly appointed premier Li KeQiang pledge to tackle environmental problems. The country has recently revised its 2015 plans to consume more solar power, up 67% to 35 GW from a previous goal of 21 GW. The Chinese govt typically achieve its strategic goals typically through its SOEs; PetroChina, the largest oil and gas producer and distributor in China, is one such SOE that Swing Media has an entrenched relationship with. Swing Media has orders to install patented solar/wind powered energy systems in 300 of PetroChina's petrol stations, with an approximate profit of Rmb100,000 per station, is just the tip of the iceberg. There are more than 100,000 petrol stations in China. In its recent placement of $0.148/share for 73.9m new shares, net gearing has decreased from 13.9% to 6.9%, and Swing Media is in a better position for the enormous opportunity in the solar market.