Company Result Feb 2013

Broadway Industrial earnings reflect the challenges within the HDD industry

Broadway Industrial Group Limited is a leader in the manufacture of precision-machined components and provider of engineered foam solutions, offering an excellent mix of cost-efficient manufacturing facilities, state-of-the-art technical capabilities, experienced management team, and innovative solutions to a global customer base.

Fundamental View

Valuations
• Broadway is trading at 10.6x 2011 earnings with a dividend yield of 5.3%. Based on Bloomberg’s consensus estimate (four brokers), the stock has a 12-month target price of S$0.28 and is set to report S$13.1m in earnings in 2012.

What’s new

• Broadway has two main business segments, namely precision components where the company manufactures HDD Actuator Arm and other semiconductor components, and form plastics for protective packaging.

• The group’s 3Q12 core net profit swung into the red with