Singapore Stock Market News

Neratel - Better Quarters Ahead

StockFanatic
Publish date: Thu, 07 May 2015, 10:57 AM
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Neratel's 1Q15 underperformed against our estimate as its GPM dipped to 33.5%, partly from a change in the mixture of equipment sales as well as a one-off low-margin project in the payment solutions segment for a Thai customer, which was done to increase the chances of securing a longer-term maintenance contract. Thus, we cut our FY15F NPAT by 5% to SGD17m, resulting in a lower DCF-based TP of SGD0.66 (1% upside, from SGD0.72). Maintain NEUTRAL, as we expect better quarters ahead.
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