KUALA LUMPUR: OSK Research sees more upside for HIROTAKO HOLDINGS BHD [] which positions itself as the only safety equipment manufacturer in Malaysia.
'Our recent discussions with management reveals that prospects for the company will continue to be exciting going forward of which the group will see more revenue contributions from Perodua after securing a new contract for the supply of the Myvi replacement come FY11,' it said ina research note issued on Monday, Sept 6.
OSK Research foresees that this contract coupled by the slew of other contracts given the slew of model launchings ahead; Hirotako's earnings growth is expected to stage a buoyant CAGR of 42.3% over FY10-FY11.
'Despite the stock running-up since last year, we still see more upside for Hirotako given its attractive valuations in which we derive a TP of RM1.63 based on 7x PE,' it said.
'Our recent discussions with management reveals that prospects for the company will continue to be exciting going forward of which the group will see more revenue contributions from Perodua after securing a new contract for the supply of the Myvi replacement come FY11,' it said ina research note issued on Monday, Sept 6.
OSK Research foresees that this contract coupled by the slew of other contracts given the slew of model launchings ahead; Hirotako's earnings growth is expected to stage a buoyant CAGR of 42.3% over FY10-FY11.
'Despite the stock running-up since last year, we still see more upside for Hirotako given its attractive valuations in which we derive a TP of RM1.63 based on 7x PE,' it said.
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