KUALA LUMPUR (Dec 30): Affin Investment Research lowered its sum-of-parts based fair value from RM7.90 a share to RM7.25 after its earnings downgrade.
It said on Friday that at its fair value, the implied valuation of 11.8 times CY12 EPS is at parity to the stock’s average five-year price-to-earnings ratio (PER).
“Whilst earnings forecasts were cut, we left our dividend forecasts unchanged. We opine our assumed dividend payout ratios of 65% for FY12 and 61% for FY13 are reasonable, predicated on dividend payouts of between 61%-66% over FY09-10,” it said.
Affin Research said at the current share price, investors can look forward to an attractive net dividend yield of 5.8% for 2012.
It said on Friday that at its fair value, the implied valuation of 11.8 times CY12 EPS is at parity to the stock’s average five-year price-to-earnings ratio (PER).
“Whilst earnings forecasts were cut, we left our dividend forecasts unchanged. We opine our assumed dividend payout ratios of 65% for FY12 and 61% for FY13 are reasonable, predicated on dividend payouts of between 61%-66% over FY09-10,” it said.
Affin Research said at the current share price, investors can look forward to an attractive net dividend yield of 5.8% for 2012.
