KUALA LUMPUR: CIMB Equities Research said despite that Daibochi's 1Q11 results coming in at only 75% of its forecast, when annualised, the earnings met its and market expectations as earnings in the remaining quarters should be stronger.
It said on Friday, May 6 that also within expectations was the interim tax-exempt DPS of 3.0 sen. We maintain our EPS and DPS forecasts.
'Our target price is also unchanged at RM3.92, based on 10.2x CY12 P/E, a 30% discount to our 14.5x target market P/E. We maintain our OUTPERFORM recommendation,' it said.
CIMB Research said factors that could spark a re-rating include i) further margin recovery over the next few quarters, ii) major contracts secured from major non-F&B companies and, iii) attractive gross dividend yield of 8-9%. Daibochi remains its top pick in the packaging sector.
It said on Friday, May 6 that also within expectations was the interim tax-exempt DPS of 3.0 sen. We maintain our EPS and DPS forecasts.
'Our target price is also unchanged at RM3.92, based on 10.2x CY12 P/E, a 30% discount to our 14.5x target market P/E. We maintain our OUTPERFORM recommendation,' it said.
CIMB Research said factors that could spark a re-rating include i) further margin recovery over the next few quarters, ii) major contracts secured from major non-F&B companies and, iii) attractive gross dividend yield of 8-9%. Daibochi remains its top pick in the packaging sector.
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