Wednesday, September 26, 2012

Guan Chong Berhad - Sweet Like Chocolate

  • Current valuations are undemanding, trading at 7.2x FY12 and 6.5x FY13 PER vs an average PER of 12x for the small/mid-cap consumer sector and 19x for Petra Foods listed on SGX.
  • We believe GCB would be rerated to at least 8x FY13 PER as its liquidity improves, translating to a TP of MYR2.46 (+23% upside). The GCB-WA, trading at a 2% premium with 2.8x gearing, offers a cheaper entry.
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Source: Maybank Research - 26 Sep 2012

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