CSB Tech released its firstly quarterly results after migrating to the Main Board. FY10 earnings came in 9% below market consensus and ours. This is already the third time that the quarterly earnings for FY10 were below our expectation, which basically affirms our Neutral call on the company. Earnings decline of 4% in FY10 also represents its second earnings contraction since FY01.
Maintain Neutral. As CBS Tech’s FY11 PER is now trading in the vicinity of the stock’s historical 5-year average PER and because of the disappointing FY10 results, we maintain our Neutral view on the stock. At our fair value, CBS Tech is valued at 7x FY11 PER.
Maintain Neutral. As CBS Tech’s FY11 PER is now trading in the vicinity of the stock’s historical 5-year average PER and because of the disappointing FY10 results, we maintain our Neutral view on the stock. At our fair value, CBS Tech is valued at 7x FY11 PER.
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