KUALA LUMPUR: Hwang DBS Vickers Research said CB Industrial Product's valuation is undemanding at 7.0 times FY11F PE, below its historical average of 7.4 times.
It said on Monday, March 28 CBIP remains a BUY given improving new order wins, better margin mix and a CPO play.
'We trimmed our SOP-derived TP to RM4.70 (from RM4.80) after adjusting for FY10 result and updating some parameters of DCF valuation for PLANTATION [] such as net debt and beta.
'Current RM360m unbilled orderbook should provide earnings stream for the engineering division until 3Q12. The stock also offers attractive dividend yield of 4.3% in FY11F,' it said.
It said on Monday, March 28 CBIP remains a BUY given improving new order wins, better margin mix and a CPO play.
'We trimmed our SOP-derived TP to RM4.70 (from RM4.80) after adjusting for FY10 result and updating some parameters of DCF valuation for PLANTATION [] such as net debt and beta.
'Current RM360m unbilled orderbook should provide earnings stream for the engineering division until 3Q12. The stock also offers attractive dividend yield of 4.3% in FY11F,' it said.
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