KUALA LUMPUR: OSK Research said on an annualised basis, Salcon's bottom line earnings were below its and consensus estimates. However, it expects Salcon will see higher 2H earnings contribution from its CONSTRUCTION [] division, and hence meet its estimates.
The research house said it was also revising its net profit upwards by about 20% after factoring in the exceptional gain from disposal of a property.
'However, we are maintaining our target price as we are not imputing these gains into our valuation. Salcon's BUY is maintained, as well as its TP of 77 sen.
OSK Research said its target price was derived by valuing its water concession operations at 41 sen and ascribing a PE of 9x to its FY10 construction EPS of 4.45 sen.
The research house said it was also revising its net profit upwards by about 20% after factoring in the exceptional gain from disposal of a property.
'However, we are maintaining our target price as we are not imputing these gains into our valuation. Salcon's BUY is maintained, as well as its TP of 77 sen.
OSK Research said its target price was derived by valuing its water concession operations at 41 sen and ascribing a PE of 9x to its FY10 construction EPS of 4.45 sen.
No comments:
Post a Comment