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NRA Capital Pte Ltd

Written by: Jacky Lee

Thursday 7 Nov 2013

ASTI – press release

Profit warnings for 3Q13

Not a surprise.

The Board of Directors of ASTI Holdings Limited deems it appropriate to issue a profit warning regarding the financial results of the group for the third quarter ended 30 September 2013 (3Q2013).

Based on the preliminary review of its draft financial results, the group is expected to report a net loss for 3Q2013 mainly due to weak market demand.

The company is still in the process of finalising the results for 3Q2013 and will provide further details of the group’s performance when it releases the financial results on or before 14 November 2013.

Our view:

We are not surprised with ASTI’s profit warning as we already estimated its 3Q will be incurring a net loss of S$1m. Despite our view that its current share price of S$0.068 is not expensive as compared to its NTA, we are worried that its net loss will be greater than our expectations and the weak semiconductor industry will drag longer than expected. Our fair value remains at S$0.086, still based on 0.8x FY13 P/NTA but our Overweight recommendation is under review now until its result is released.      


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