KUALA LUMPUR: CIMB Equities Research said the positive takeaways from Unisem's 1Q11 briefing were its expectations of a strong 2H11, commitment to its China expansion and confirmation of limited aftershocks from Japan's earthquake at this juncture.
It said on Friday, April 29 the main negative surprises were the steep drop in utilisation rates in 1Q and the more muted tone for 2Q.
'We are cutting our FY11-13 EPS by 4-8% to reflect cost pressures from a firmer ringgit and a bigger capacity base. The earnings adjustments have no impact on our target price of RM2.08, which we continue to base on a 40% discount to its mid-cycle valuation P/BV of 2.2x,' it said.
CIMB Research said it remains NEUTRAL on Unisem as the absence of immediate catalysts and its weak near-term earnings are balanced out by the attractive yield and volume loading from the tier-1 customer. Switch to Jobstreet.
It said on Friday, April 29 the main negative surprises were the steep drop in utilisation rates in 1Q and the more muted tone for 2Q.
'We are cutting our FY11-13 EPS by 4-8% to reflect cost pressures from a firmer ringgit and a bigger capacity base. The earnings adjustments have no impact on our target price of RM2.08, which we continue to base on a 40% discount to its mid-cycle valuation P/BV of 2.2x,' it said.
CIMB Research said it remains NEUTRAL on Unisem as the absence of immediate catalysts and its weak near-term earnings are balanced out by the attractive yield and volume loading from the tier-1 customer. Switch to Jobstreet.
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