Friday, November 18, 2011

CB Industrial Product RM3.96: Hold

Eyes unto the Cash  Shariah-compliant
Within expectation. CBIP’s 3Q11 core net profit RM27m (+37.5% YoY; 14% QoQ) brings 9M11 net profit to RM73m (+63% YoY), within our expectation but ahead of consensus. Earnings growth post disposal of two of its estates (target for completion in Dec 2011) appears to be lackluster, in our view. Maintain Hold with an unchanged TP of RM3.54 based on 7x 2013 PER pending greater clarity on the utilization of its cash proceeds of RM268m; its potential next key catalyst.


Maybank research (18 November 2011)

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