Wednesday, June 22, 2011

C.I. Holdings is CIMB Research's top small cap pick

KUALA LUMPUR: C.I. HOLDINGS BHD [] shares rose on Wednesday, June 22 after CIMB Equities Research said the stock was its top small cap pick this month.

At 9.50am, C.I. Holdings added nine sen to RM3.21 with 25,000 shares done.

CIMB Research said it favoured the stock for its market leadership; marketable product line; and on an M&A angle.

'We like CIH for these factors 1) Market leadership ' Only three years after its launch, Tropicana is now the leader in the total juice market with a 25% share. 2) An increasingly marketable product line ' A new non-carbonated drink will be launched next month. In 3Q11, non-carbonated drinks accounted for 43% of beverage sales from 20% a few years ago. CIH is aiming for a 50:50 sales split between carbonated and non-carbonated in the next few years. 3) An M&A angle ' Management is open to M&A opportunities, especially in the snack segment,' said the research.

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