Results in line. 1QFY12 net profit of RM31m (+21% QoQ, -13% YoY) was 23%
of our full-year forecast and 20% of consensus. After the recent share
price run-up, we think the market will refocus on earnings deliveries.
We see downside risk to street's earnings estimates as we expect higher
latex cost ahead, exacerbated with overcapacity which may take another
1-3 years to be absorbed. 16x CY13 PER is pricey. Our RM3.40 DCF-derived
TP implies 12x CY13 PER.
Maybank research (19 December 2011)
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