Friday, August 26, 2011

CIMB Research maintains Trading Buy on Impaspro Corp

KUALA LUMPUR: CIMB Equities Research said agrochemical and pesticide manufacturer, Imaspro Corp's FY6/11 net profit was in line at just 1% above its forecast.

It said on Friday, Aug 26 the stronger sales mitigated the weaker margins and strengthening of the ringgit.

Consistent with the previous year, Imaspro did not declare a final dividend.

'We fine-tune our FY12-13 EPS numbers by -1% to +0.3% as we update the balance sheet items. Due to the minimal earnings change, our target price remains at RM1.13, still pegged to 8.7 times CY12 P/E, which is a 40% discount to our target market P/E of 14.5 times,' it said.

CIMB Research said it was still looking at healthy earnings growth of 8-18% for FY12-14. The stock remains a BUY.

'Potential re-rating catalysts are i) new product launches, 2) margin recovery, and 3) rising cash pile which could mean higher dividends or M&As,' it said.

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