KUALA LUMPUR: CIMB Equities Research is maintaining a Hold call on Berjaya Corp Bhd while its asset-based SOP target price is unchanged at RM1.25.
It said on Thursday, March 31 Berjaya Corp's 9MFY4/11 core net profit beat expectations as it accounted for 89% of our full-year forecast.
A lower-than-expected prize payout led to stronger interim results for its gaming division while the direct selling, retail and distribution businesses were helped by its aggressive expansion.
'We are raising our FY11-13 EPS forecasts by 0.3-5.5% to factor in 1) a lower payout for its gaming unit, 2) higher contribution from the direct selling business, and 3) stronger demand for its stockbroking and general insurance products.
'Our asset-based SOP target price, however, is unchanged at RM1.25, which imputes a 40% discount to its SOP to account for its holding company status, volatile earnings record and potential delays in the development of Berjaya City or the Berjaya Hills landbank. For big-cap exposure to conglomerates, investors should opt for Sime Darby (Trading Buy),' it said.
It said on Thursday, March 31 Berjaya Corp's 9MFY4/11 core net profit beat expectations as it accounted for 89% of our full-year forecast.
A lower-than-expected prize payout led to stronger interim results for its gaming division while the direct selling, retail and distribution businesses were helped by its aggressive expansion.
'We are raising our FY11-13 EPS forecasts by 0.3-5.5% to factor in 1) a lower payout for its gaming unit, 2) higher contribution from the direct selling business, and 3) stronger demand for its stockbroking and general insurance products.
'Our asset-based SOP target price, however, is unchanged at RM1.25, which imputes a 40% discount to its SOP to account for its holding company status, volatile earnings record and potential delays in the development of Berjaya City or the Berjaya Hills landbank. For big-cap exposure to conglomerates, investors should opt for Sime Darby (Trading Buy),' it said.
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