Creative Technology - Not out of the woods yet:as expected : CIMB

24 March 2008
Creative Technology (CREAF SP / CREA.SI, UNDERPERFORM - Maintained, S$6.25
- Target: S$5.39)
Quick takes - Not out of the woods yet, as expected
by Jonathan NG

In a statement to the SGX this morning, Creative warned that that it would
be reporting an operating loss for the current third quarter as revenue has
fallen below its target. This is in line with our expectations. We are
keeping our FY08-10 earnings intact (excluding exceptional gains of S$200m)
as well as our target price of S$5.39, which is based on 0.85x P/BV, the
low end of its historical P/BV. Maintain Underperform.