ECS

ECS: 1Q13 results above expectations. Revenue rose 21% yoy to $1,090.3m, net profit jumped 23% to $8.3m. Excl FX and other exceptional items, core earnings would have risen 29% yoy to $8.5m, constituting 25.6% of OCBC’s FY13 forecast, despite 1Q being a seasonally weak quarter. ECS managed to record healthy yoy revenue and EBIT growth for all its core segments despite the general malaise in the PC market, due to its focus on driving sales of mobile devices such as smartphones and tablets from major IT vendors, as well as enterprise systems pdts. Full quarter contribution from ECS’ distribution of Apple’s iPhone 5 in China, especially in the second tier cities such as Chengdu likely helped. OCBC lifts forecasts, raises TP to $0.57 from $0.53, pegged to 6x FY13e P/E (previously 5.8x). Highlights the 4.7% FY13e yield. Upgrades from hold to Buy.