Singapore Stock Market News

Neratel - Supported By Dividend Yield

StockFanatic
Publish date: Mon, 10 Nov 2014, 04:19 PM
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Neratel's 9M14 NPAT of SGD11.6m only makes up 56% of our FY14 NPAT estimates. As a result, we slash our FY14 revenue and NPAT estimates by 7.7% and 17% to SGD191m and SGD17m respectively. We change our valuation methodology to a DCF valuation as well to reflect the cash-generative value of the business.

As Neratel is supported by an attractive 7.4% dividend yield, we maintain NEUTRAL with a slightly higher DCF-based TP of SGD0.83 (from SGD0.72) a 2.5% upside.
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