Buy this stock. Although its share price has risen by an impressive 30%
YTD, we see more upside. Hartalega’s 2013 PER of 10x is still a 45%
discount to Top Glove’s 19x, despite industry-beating profitability over
the last two years. Most importantly, we see a major re-rating catalyst
from a potential bonus issue. Fundamentally, Hartalega’s operating
environment remains impeccable owing to favourable input costs. The
stock remains our top sector pick, with TP upgraded 25% to RM8.50 on a
conservative 12x 2013 PER (DCF previously), still a 30% discount to Top
Glove’s 5-year average PER.
Maybank Research 2 Feb 2012
Click here for full report
No comments:
Post a Comment