Broadway Industrial

Broadway Industrial: CIMB maintains UnderPerform with $0.27 TP. House note that recent visit to Broadway’s China facilities suggests that the group is on the right track to grow its non-HDD businesses as well as improve efficiencies to lower costs. However, think the HDD sector will remain tough in 1H13 and will negatively affect Broadway. Add that the non-HDD component businesses, consolidated to be done mostly in the Shenzhen facilities, started to see a good up-tick in orders in 1Q13. The grp is also working hard to gain new customers as well as deepen its relationships with existing ones to grow the non-HDD component business in 2013.