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Declout’s no flash in the pan; plans for growth after spinoffs

Benjamin Cher
Benjamin Cher11/1/2016 12:08 PM GMT+08  • 3 min read
Declout’s no flash in the pan; plans for growth after spinoffs
SINGAPORE (Nov 1): NRA Capital is maintaining its “overweight” call on Declout with a fair value of 34 cents after management outlined plans to grow its remaining businesses organically and inorganically to offset the revenue gap left by Acclivis with
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SINGAPORE (Nov 1): NRA Capital is maintaining its “overweight” call on Declout with a fair value of 34 cents after management outlined plans to grow its remaining businesses organically and inorganically to offset the revenue gap left by Acclivis within the next one or two years.

(See also: DeClout sells IT services unit Acclivis to CITIC Telecom, books $28 mil gain)

In a Monday report, analyst Liu Jinshu notes that the divestment to CITIC Telecom has been approved by shareholders, and reiterates that Declout is in a position of strength with “two harvests” in a year. Upon completion, Declout will end up with net cash of at least 2.8 cents per share, and up to 4.6 cents per share should Acclivis exceed target earnings for FY16.

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