Staging an earnings recovery Shariah-compliant
Marked QoQ improvement. 9M11 net profit of RM68m (-24% YoY)
was below expectations, at 67-68% of our and consensus full-year
estimates. Our 2011-13 EPS forecasts is cut by 8-12% on lower sales
assumption. Nevertheless, 3Q11 earnings has outperformed the latexfocused
peers with its net profit rising by 13% QoQ. We think the recent
sharp drop in latex cost (-18% MoM) is a fresh catalyst to the stock and
2013 PER valuation of 8.4x is undemanding. Maintain Buy, with a
marginally lower DCF-derived TP of RM3.50 (from RM3.60).
Maybank research (18 November 2011)
Click here for full report »
No comments:
Post a Comment