Sansiri

Sansiri Plc (SIRI)
SIRI is not immune to the floods and its lower FY11 guidance suggests a fragile 4Q11. Still, a vigorous rebound is expected once the waters recede. The high quality backlog, financially-resilient customers and pent-up demand are just some of its dynamic growth drivers. Our lower FY11-13 EPS combined with a roll forward in our valuation to 5x CY13 P/E from 6x CY12 P/E cuts SIRI’s target price by 11%. However, we maintain our OUTPERFORM call premised on the company’s expected robust earnings recovery and total return of 35%.