Upgrade to Buy with a higher TP of MYR8.35, ahead of recoveries at the
automotive and O&G sectors, and on the back of a 10-11% rise in
2012-13 net profit forecasts. The disruption to the regional auto supply
chain has abated while its O&G segment is at the cusp of a revival.
With market already absorbing the anticipated weak 1Q12 earnings and
its 2011 kitchen-sinking exercise, UMW now offers a recovery play angle
with modest growth (3-year EPS CAGR of 20%) and undemanding valuations,
supported by a decent dividend yield (6%).
Click here for full report
Source: Maybank Research - 23 April 2012
No comments:
Post a Comment