Dec 2007 Financial News

NML Year End Update

Dec 18, 2007

Neal & Massy Holdings Limited
(Fiscal Year Ended September 30, 2007)

For the Year Ended September 30, 2007, Neal & Massy Holdings Limited (NML) reported Earnings Per Share (EPS) of $4.15, which was up on the corresponding period in 2006 by a significant 23.15 per cent or $0.78. Q407 on Q406, the Group’s EPS grew 8.46 per cent or $0.11 from $1.30 to $1.41.

The Board of Directors has approved a final dividend of $0.90 per share to be paid on January 7, 2008 to shareholders on record as at December 21, 2007. This brings the total dividend for the year to $1.26 (2006 - $1.05).

NML shares last closed at a price of $48.10. We are forecasting an EPS of $4.75 for fiscal 2008. At the current price and this forecast, NML is trading at a price to earnings multiple of 10.13 times. Additionally using a multiple of 11 times and the forecasted EPS of $4.75, this share has an expected return of approximately 9 per cent on the current price or a target price of approximately $52.25. Thus we continue to recommend a BUY on this share.

Nancy Chen
Research Analyst