Wednesday, February 8, 2012

Hock Seng Lee: Maintain Buy Take another look

Maintain Buy. HSL’s share price underperformed in 2011, falling 23% (+13% 2012-YTD). At current levels, the stock trades at 8.4x one-year forward PER, a level not seen since 2H 2009. Near-term earnings will be supported by a decent RM1b outstanding order book. We recommend that investors reposition for a pick-up in infrastructure construction activities in Sarawak. Maintain Buy with an unchanged RM2.10 target price, pegged to 12x 2012 earnings.

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