TAS (FV RM1.57 – BUY) Result Note: 1QFY14 Core Earnings Up 95% Y-o-Y· TAS’ 1QFY14 core net profit of MYR5.3m accounted for 23% of our full-year target, but we do not view this as a concern.· The company is backed by strong orderbook of MYR372m, equivalent to 2.7x of its FY13 revenue· Core quarterly earnings surged 95% y-o-y on the back of 67% y-o-y jump in revenue.· Maintained BUY, raising our FV to MYR1.57 from MYR1.18, pegged to a P/E of 12x. We deem this valuation fair, with 12x P/E, implies a low 3-year PEG ratio of 0.13x. Furthermore, the compay is poise to secure more contracts which could contribute to its FY15F.Warmest regards,Chaw Sook Ting[Description: cid:[email protected]]RHB Research Institute6th Floor, Plaza OSKJalan Ampang50450 Kuala LumpurDID: +60 (3) 92077604FAX: +60 (3) 21753202HP: +6012 2107406Disclaimer: All information in this email is based on material compiled from data considered to be reliable at the time of writing, but RHB does not make any representation or warranty, express or implied, as to its accuracy, completeness or correctness. No part of this e-mail is to be construed as an offer or solicitation of an offer to transact any securities or financial instruments whether referred to herein or otherwise. This e-mail is general in nature and has been prepared for information purposes only. It is intended for circulation to the clients of RHB and its related companies. Any recommendation contained in this e-mail does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This e-mail is for the information of addressees only and is not to be taken in substitution for the exercise of judgment by addressees, who should obtain separate legal or financial advice to independently evaluate the particular investments and strategies. RHB, its affiliates and related companies, their respective directors, associates, connected parties and/or employees may own or have positions in securities of the company(ies) covered in this e-mail or any securities related thereto, and may from time to time add to, or dispose off, or may be materially interested in any such securities. Further, RHB, its affiliates and related companies do and seek to do business with the company(ies) covered in this e-mail and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies), may sell them or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory or underwriting services for or relating to such company(ies), as well as solicit such investment, advisory or other services from any entity mentioned in this e-mail. RHB and its employees and/or agents do not accept any liability, be it directly, indirectly or consequential losses, loss of profits or damages that may arise from any reliance based on this e-mail or further communication given in relation to this e-mail, including where such losses, loss of profits or damages are alleged to have arisen due to the contents of such e-mail or communication being perceived as defamatory in nature. The term “RHB” shall denote where applicable, the relevant entity distributing the e-mail in the particular jurisdiction mentioned specifically herein below and shall refer to RHB Research Institute Sdn Bhd, its holding company, affiliates, subsidiaries and related companies. All Rights Reserved. This e-mail is for the use of intended recipients only and may not be reproduced, distributed or published for any purpose without prior consent of RHB and RHB accepts no liability whatsoever for the actions of third parties in this respect. We shall not be liable for this e-mail if modified, changed or falsified.This message is intended only for the use of the person(s) to whom it is addressed and may contain information that is privileged or otherwise protectedfrom disclosure. If you are not the intended recipient you are hereby notified thatany use, review, disclosure or copying of this message and the information itcontains is prohibited. If you receive the message in error, please notify thesender by reply e-mail and discard all its contents.Thank You.
Posted on: Fri, 25 Oct 2013 08:25:43 +0000
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