Empire Industries Ltd (EIL)

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$EIL.v $ERILF Empire Industries Ltd. baystreet.ca eResearch prospective June 1 & June 3, 2015

ABOUT EMPIRE INDUSTRIES Empire Industries Ltd. is a manufacturer of specialized engineered products, which the Company sells in domestic and selected international markets. The Company’s operations are conducted in three business sectors: 1. Media-Based Attractions. 2. Manufactured Products, and 3. Steel Fabrication Services. Empire Industries also has two key equity partnerships: 1. A 49% interest in ACE Industrial Services, which operates in the oil sands industrial maintenance services market; and 2. A 45% interest in a Chinese steel fabrication joint venture, Dongguan Qiguang Dynamic Steel Structures, Ltd., in the Asian steel fabrication market. OUTLOOK Empire’s Media-Based Attractions sector is expected to continue to benefit from strength in the theme park attractions market, as indicated by the Company’s recent contract awards in this area. The Manufactured Products operations are currently being adversely affected by a reduced order backlog and lower throughput and pricing for hydrovac trucks. Measures are being taken to expand sales efforts into the U.S.A. The Steel Fabrication Services operations are expected to experience increased competition in Alberta, as a result of reduced capital spending in western Canada. On balance, we expect Empire to continue to achieve further growth in its operations over the rest of the year. RECOMMENDATION AND TARGET PRICE eResearch recommends the shares of Empire Industries as a Speculative Buy. The shares are currently trading at $0.13. Our first Target Price is $0.22, and our second is $0.27.

https://www.baystreet.ca/articles/research_reports/eresearch/EIL_060115-B.pdf

https://www.baystreet.ca/articles/research_reports/eresearch/EIL_060315-B.pdf