Thursday, October 20, 2011

Affin Research maintains Buy on Bonia, TP RM2.50

KUALA LUMPUR: Affin Investment Bank Research is maintaining its Buy call on Bonia Corp with an unchanged target price of RM2.50, pegged to a PE target of 10 times on CY12 EPS.

It said on Thursday, Oct20 Bonia will continue to benefit from: 1) its 2010 acquisition of the Singapore-based Jeco Group, and; 2) sturdy consumer spending from income growth and upcoming festive sales.

'Key risks to the stock are a slowdown in consumer spending and potentially higher food/fuel prices due to the government's agenda in rolling back subsidies,' it said.

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