KUALA LUMPUR: RHB Research Institute has accorded a fair value of 69 sen for China Ouhua Winery Holdings Ltd which will be listed on Wednesday, Nov 3. Its offer price is 60 sen.
'We have derived a fair value of 69 sen share after applying an FY11 target of 6x PER, which is between the weighted average FY11 PER of Malaysian F&B companies with similar market capitalisation and the weighted average FY11 PER of three out of four Chinese shoemakers,' it said.
RHB Research said Xidelang was not included as there were no forward earnings estimates. Its fair value implies an upside of 15%, although it noted that Ouhua offers attractive dividend yields of 5.1-6.6% p.a. for FY10-12.
'We have derived a fair value of 69 sen share after applying an FY11 target of 6x PER, which is between the weighted average FY11 PER of Malaysian F&B companies with similar market capitalisation and the weighted average FY11 PER of three out of four Chinese shoemakers,' it said.
RHB Research said Xidelang was not included as there were no forward earnings estimates. Its fair value implies an upside of 15%, although it noted that Ouhua offers attractive dividend yields of 5.1-6.6% p.a. for FY10-12.
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