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12-06-2015, 04:42 PM
RHB analyst view on the company...
XMH kept at ‘buy’ with 30 cents target price by RHB
SINGAPORE (June 12): RHB is maintaining its ‘buy’ call on XMH, the customised propeller engine supplier, with a 30 cents target price with subsidiaries Mech-Power Generator (MPG) and Z-Power securing contracts worth $23.1 million with deliveries stretching into 2017.
Z-Power was also awarded the prestigious ABB Value Provider Certification.
“We believe that strong operations at these subsidiaries could contribute to XMH’s 75% FY16F earnings growth,” says XMH in a June 11 report.
MPG and Z-Power were awarded contracts of $15.5 million and $7.6 million.
MPG will deliver backup generators to a data centre from between Sep 2015 and Mar 2017 while Z-Power will supply electrical packages to a variety of vessels, with deliveries between 2015 and 2016.
Z-Power was also awarded the prestigious ABB Value Provider certification, which enables the company to market as well as build and assemble ABB liquid and air-cooled variable frequency drivers outside of Finland.
“From this, we estimate $20 million of recurring revenue for Z-Power going forward. We believe that contributions from MPG and Z-Power, coupled with a gradual recovery in the Indonesian market for
XMH’s core engine business, would enable earnings to grow 75% in FY16F,” says lead analyst Jesalyn Wong.
In 3QFY15 ended April, XMH saw gross profit margin at a strong 31.7%.
“We expect its profitability to be maintained going forward as these new contracts may likely result in similar margins,” says Wong.
They should also generate healthy $28 million and $20 million in operating cash flow in FY15F/FY16F, on the back of its healthy orderbook.
Key risks include a delayed recovery of engine orders in Indonesia.
XMH is trading flat at 20.5 cents as at 12:38 p.m.
http://www.theedgemarkets.com/sg/article...-price-rhb
XMH kept at ‘buy’ with 30 cents target price by RHB
SINGAPORE (June 12): RHB is maintaining its ‘buy’ call on XMH, the customised propeller engine supplier, with a 30 cents target price with subsidiaries Mech-Power Generator (MPG) and Z-Power securing contracts worth $23.1 million with deliveries stretching into 2017.
Z-Power was also awarded the prestigious ABB Value Provider Certification.
“We believe that strong operations at these subsidiaries could contribute to XMH’s 75% FY16F earnings growth,” says XMH in a June 11 report.
MPG and Z-Power were awarded contracts of $15.5 million and $7.6 million.
MPG will deliver backup generators to a data centre from between Sep 2015 and Mar 2017 while Z-Power will supply electrical packages to a variety of vessels, with deliveries between 2015 and 2016.
Z-Power was also awarded the prestigious ABB Value Provider certification, which enables the company to market as well as build and assemble ABB liquid and air-cooled variable frequency drivers outside of Finland.
“From this, we estimate $20 million of recurring revenue for Z-Power going forward. We believe that contributions from MPG and Z-Power, coupled with a gradual recovery in the Indonesian market for
XMH’s core engine business, would enable earnings to grow 75% in FY16F,” says lead analyst Jesalyn Wong.
In 3QFY15 ended April, XMH saw gross profit margin at a strong 31.7%.
“We expect its profitability to be maintained going forward as these new contracts may likely result in similar margins,” says Wong.
They should also generate healthy $28 million and $20 million in operating cash flow in FY15F/FY16F, on the back of its healthy orderbook.
Key risks include a delayed recovery of engine orders in Indonesia.
XMH is trading flat at 20.5 cents as at 12:38 p.m.
http://www.theedgemarkets.com/sg/article...-price-rhb
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡