Tuesday, 25 September 2007

Company update Sep 24 - Tiong Woon

A very common scenario in Singapore market. After a company has turn around, people start taking notice, more and more analyst would start cover the company. Today, here is the comment from CIMB-GK regarding Tiong Woon. In the short term, one more buy call would definitely support the share price. We are unlikely to see it goes back to 0.6x region. Hopefully I would be able to buy some at 0.7x or 0.8x.

I do hope there is a second wave of sub-prime problem which would trigger another correction. I believe after another round of correction is cleared, then the market would be prepared to go back. On the other hand, we hope some of the foreign money or china money would enter South East Asia market in coming months.

CIMB-GK:

Initiate with Outperform and target price of S$1.50, set at 15x CY08 P/E,
comparable to valuations for SGX-listed construction peers. Our target implies
upside potential of 43%. TWC trades at an attractive 10.7x CY08 P/E against a 3-
year core earnings CAGR forecast of 50.3%.

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