KUALA LUMPUR:'' Hong Leong Investment Bank Research (HLIB Research) said Tradewinds PLANTATION []'s share price performance will likely sustain over the near term.
It said on Thursday, Dec 16, that given the valuation of the stock is still relatively undemanding, at 37% discount to industry average one-year forward P/E of 16.2 times.
'Another re-rating catalyst would be its maturing tree profile by FY11. A case in point is IJM Plantations (IJMP), whereby share price performance started to play catch up and outperformed most plantation players in early-2006 on the back of a jump in the maturing oil palm tree profile in FY03/07,' it said.
HLIB Research said it was raising its fair value on TWSP by 30% from RM2.92 to RM3.80 (27.1% potential capital appreciation) based on revised 13x (previously 10x) FY11 fully-diluted EPS of 29.2 sen to reflect its lower share liquidity and high net gearing level.
This is a 10% discount to the average 1-year forward P/E of 14.4x for the smaller plantation players.
It said on Thursday, Dec 16, that given the valuation of the stock is still relatively undemanding, at 37% discount to industry average one-year forward P/E of 16.2 times.
'Another re-rating catalyst would be its maturing tree profile by FY11. A case in point is IJM Plantations (IJMP), whereby share price performance started to play catch up and outperformed most plantation players in early-2006 on the back of a jump in the maturing oil palm tree profile in FY03/07,' it said.
HLIB Research said it was raising its fair value on TWSP by 30% from RM2.92 to RM3.80 (27.1% potential capital appreciation) based on revised 13x (previously 10x) FY11 fully-diluted EPS of 29.2 sen to reflect its lower share liquidity and high net gearing level.
This is a 10% discount to the average 1-year forward P/E of 14.4x for the smaller plantation players.
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