Swing Media

Swing Media: DMG OSK noted that following the conclusion of China’s annual energy work conference last week, which outlined aggressive domestic solar power development targets, many solar-related shares have rallied. House believe that Swing Media, a company with a stable cash cow business while also tapping on the robust domestic demand for solar power in China, is currently undervalued, trading at 4.1x FY13 P/E and 0.22x FY13 P/B. DMG OSK also notes that Swing Media has successfully diversified into the solar power installation business, targeting at China’s robust domestic demand. The Company has started to execute its solar panel installation contract with PetroChina, building eight of them in Shanghai, ZheJiang and in Tibet. The group aims to complete 200 stations progressively over two years, generating aggregate revenue and profits of HKD$180m and HKD$35m respectively. House reiterate BUY, with a TP of S$0.240 based on 0.5x (industry average) FY13 P/B. Current stock price is at $0.103 (up 3% today).