DJ MARKET TALK: Citi Cuts Inter-Roller Engineering To Sell


0209 GMT [Dow Jones] STOCK CALL: Citigroup downgrades Inter-Roller Engineering (J74.SG) to Sell/Low Risk from Buy/Low Risk, lowers target price to S$0.90 from S$1.10. Notes company indicated delays in the award of contracts would lead to more revenue contribution in FY08 instead of FY07, would have negative impact on turnover in 3Q07, 4Q07. Trades down 15.0% at S$0.96 on heavy volume. (JEM)


Contact us in Singapore. 65 64154 150;
MarketTalk@dowjones.com

(END) Dow Jones Newswires

August 07, 2007 22:09 ET (02:09 GMT)

Copyright (c) 2007 Dow Jones & Company, Inc.

Inter-Roller Engineering
An unexpected hard landing
Fully Valued (Downgrade) S$1.13; Price Target : 12-Month S$ 1.00 (Prev S$
1.15)

Story: IRL reported 1H07 results that were below expectations. Excluding
net gains (DBSV estimate) on sale of investment property S$10.6m, net
earnings at half-time declined by 31% y-o-y to S$9.2m on a flat topline of
c. S$77m. A S1ct dividend was declared for the quarter.

Point: While the Group is confident of securing more orders in the second
half of 2007, a delay in the award of tenders would affect the Group’s
turnover in the 2nd half of the year with most of these orders being
carried out in 2008. To reflect lower order wins and higher costs, we have
cut our core earnings estimates for FY07 and FY08 by 24% and 13%
respectively.

Relevance: The stock has risen by over 25% since February and is currently
trading at c.14x FY08 earnings. With our target price now at S$1, based on
12x FY08 earnings, following our lowered earnings estimates, we are
downgrading the stock to a Fully Valued.


我刚刚割肉。由赚到赔，要好好反思一下。

俺在大盘猛跌之前，出于自保，止赢离场。


今天一看，跌势太吓人。


如留到今天，俺亦会一刀换回生存权，止损离场，不会手软。

到点就砍，不会手软，如再涨回来，俺再买回来，各人习惯不同，嘿嘿。。。。。。

OSIM已经吃过苦头了