Monday, August 2, 2010

OSK Research: Take profit on Unisem

KUALA LUMPUR: OSK Research has recommended investors take profit on Unisem, citing that the share price, which hit a high of RM3.50 (cum bonus price) in May, was nearing its historical 9-year average high P/NTA of 2.2x.

"We continue to worry if such valuations could be sustained as the industry is expected to slow down by about 50% after this year. Hence, we stick to our call and fair value based on 1.2x FY10 P/NTA," it said on Monday, Aug 2.

OSK Research said also the 16.5% upward adjustment on earnings has no impact on its FY10 P/NTA valuation, considering that Unisem's paid-up share capital to be enlarged by 25% after the exercise of its warrants.




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