Not unexpectedly, Broadway  pulled back today after the strong run-up. Closed down 1.5 cents to 30 cents.

Announcement by company after market closed will be a dampener on Wednesday trading, IMHO.

 
1. The Group is expected to record a net loss for 4Q2011 due to impairment charges and operational losses arising from the Thailand flood. The Thailand flood had caused a substantial disruption to the Hard Disk Drive (“HDD”) supply chain in Thailand and affected the production output of the industry. This has resulted in lower customer orders and affected the Group’s HDD sales in 4Q2011. 

2. The Group is making an impairment loss of US$4.4 million in 4Q2011 on its fixed assets and inventories based on its estimated flood damages. Although the Group’s fixed assets and inventories in Thailand are fully insured, the amount claimable is subjected to the insurance company’s assessment, which is still ongoing.

CIMB is not wrong with JCY. Those who knew the HDD sector would know that 1H2012 is going to be tough for the HDD players.

But keep your eyes open for the HDD players in 2H2012.

Broadway is up 7.7%? Wahpiang, why 28 cents now?

Mr Zen, u kow cimb today not happy with broadway -- so how?

52 week low alert! - Broadway International's share price just hit its 52 week low of S$0.255 last Friday (Bloomberg). The flood in Thailand is in the price and one might be thinking if now is a good time to pick up some shares in this Company. Although the worst may be over, it could take a few quarters before Broadway can start posting better earnings and earn a re-rating. Could it be a case of dead money for 1H12, at least if you initiate a position now?

We have an Underperfom, TP S$0.26 on Broadway. If you still have no idea how bad earnings will be SGX-listed HDD component suppliers, just have a glance at Cheung Woh and Miyoshi's results.  If you must buy into the HDD supply chain, you could consider JCY International (Outperform, TP RM 1.54) where we expect positive earnings surprise to continue for the next few quarters.

Broadway, based on past record, can be expected to declare 1-c final dividend (when it announces its full year results).  The 1-c is after adjusting for last year's bonus issue of 1 bonus share for 1 share. So the dividend yield is about 3.3% -- so-so only but a consolation if you want to buy and hold for its profits to normalise (after a disastrous 4Q becos of the flood).

very cheap price to accumulate now

I think its 4Q results will be pretty bad -- after the Thai floods which disrupted the operations of its subsidiary in Thailand.

Established since 1969, Broadway Industrial Group is a global leader in the manufacture of precision-machined components and foam plastic solutions provider. The Group was listed on the Singapore Exchange Main Board in 1994.
Through its wholly-owned subsidiary Compart Asia, the Group is one of the top manufacturers of actuator arms and related assembled parts for the global hard disk drive ("HDD") industry. Leveraging on its expertise in precision machining, Compart is also expanding into the manufacture of precision components for the electronics, semiconductor, automotive and other industries.

With over 40 years of track record, Broadway is also a leading provider of eco-friendly foam solutions for packaging, insulation, automotive, medical and other applications. With its emphasis on innovation, quality and reliability, Broadway’s foam plastic division has developed a strong pool of global customers in the automotive, consumer electronics, construction, shipbuilding and other emerging industries.

Headquartered in Singapore, Broadway comprises of over 14 manufacturing facilities in China, Thailand and America.