 |
|
  |
2009-3-2 10:48:00 a.m. HKT, XFNA
DJ MARKET TALK: Citi Cuts NagaCorp Target To HK$1.25 From HK$1.65
|
| |
| 1036 [Dow Jones] STOCK CALL: Citigroup cuts NagaCorp (3918.HK) target to HK$1.25 from HK$1.65 after lowering FY09-10E EPS estimates by 57.5%-60% on higher staff costs, provision expectations. Calls a "value trap," but keeps at Buy as company remains net cash with no capex requirements, delivers reasonable bottomline. Notes FY08 net profit in line with house's estimate at US$40 million, down 20% on-year on Poibos reneging on agreement, poor Hold at 2.6%. Says concerned on account receivables rising to US$66 million vs US$34 million on-year as junkets delaying payments; aggressively estimating about 25% defaults on excess receivables. But notes, NagaCorp set to benefit as Cambodian government closed key competitor, making company only licensed casino in Phnom Penh. Shares up 1.3% at HK$0.77. (LES) Contact us in Hong Kong. 852 2802 7002; MarketTalk@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=ACR%2Bj4XortLErbSDg6GAQQ%3D%3D. You can use this link on the day this article is published and the following day.
(Delayed by 1 hour)
-0-
Copyright (c) 2009 Dow Jones & Company, Inc. |
| |
News Provided by XFNA |
| |
|
| Copyright(C) AASTOCKS.com Limited 2000. All rights reserved |
| |
|
|
|
