apsec have put a buy recomendation on IIN here is part of...

apsec have put a buy recomendation on IIN here is part of report



Catalyst – Scale and service driving value
IIN announced strong 1H 2012 results for the period ended 31 December 2011. Revenue for the 1H 2012 grew to AU$ 365m,
an increase of 11% from the 1H 2011 figure of AU$ 328m and grew 28% when based upon twelve month figures for the same
period. EBIT stood at AU$ 27m, up from AU$ 20m at 31 December 2010, an increase of 35%. EBITDA grew strongly, up 38%
to AU$ 56m at 31 Dec 2011 and is now up 75% from the 1H 2010 figure of AU$ 32m. Earnings also grew strongly, from AU$
12m at 31 December 2010 to AU$ 14m at 31 December 2011, an increase of 17%.
These impressive figures have been driven primarily by management’s strategy of growing rapidly to achieve scale, and using
this scale to inflate margins. This has been achieved through a combination of organic growth and acquisitions.
Valuation
Our DCF model values IIN at AU$ 3.92 per share, a considerable upside to the current share price