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CNG - BUY - Cheap, high dividend play - Update

Company Research

24 Jun 2013

In 1H, input gas prices were hiked 6.3% but gross margin remain relatively unchanged quarter-on-quarter at 23% with sales rising 26% but net profit increasing only 2% due costs of a marketing event that is conducted every two years. The results are fairly in line with our forecast. At the current price, we still like CNG for its cheap valuation of 4.3x FY13 EPS and attractive dividend yield of 12%.
Tags: CNG

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