KUALA LUMPUR: Shares of EP MANUFACTURING BHD [] were actively traded on Wednesday, May 11 after OSK Research said it expects the company's dividends to be higher at 4 sen, yielding 4.7% for FY11.
The research house upgraded its fair value for the stock from 89 sen to RM1.38 premised on 7 times PE (from 6 times) and retained its Buy call.
At 9.40am, EPMB was up 5.5 sen to 91 sen with 1.14 million shares traded.
In a note May 11, OSK Research said that while supply disruptions were likely to impact Perodua in the near term, expectations of a sharp recovery as early as July reinforced its view that EPMB's production of parts for Perodua would continue to be at normalized levels in order to attain sufficient inventories for the carmaker.
'The 3% upward revision in revenue in view of the higher number of Perodua units supplied to coupled by the improved operating efficiencies achieved providing a boost to margins prompts us to increase our earnings by 28.4% for FY11,' it said.
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The research house upgraded its fair value for the stock from 89 sen to RM1.38 premised on 7 times PE (from 6 times) and retained its Buy call.
At 9.40am, EPMB was up 5.5 sen to 91 sen with 1.14 million shares traded.
In a note May 11, OSK Research said that while supply disruptions were likely to impact Perodua in the near term, expectations of a sharp recovery as early as July reinforced its view that EPMB's production of parts for Perodua would continue to be at normalized levels in order to attain sufficient inventories for the carmaker.
'The 3% upward revision in revenue in view of the higher number of Perodua units supplied to coupled by the improved operating efficiencies achieved providing a boost to margins prompts us to increase our earnings by 28.4% for FY11,' it said.
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