KUALA LUMPUR (Feb 15): CIMB Equities Research is maintaining its Trading Buy call on Hap Seng PLANTATION []s at RM3.05 and has a target price of RM3.27.
It said on Wednesday investors should discount Hap Seng Plantations’ 6% FY11 results shortfall and focus on its cheap ratings.
“It is the cheapest Malaysian planter in our universe, boasting an enterprise value per hectare that is below market price. We cut our FY12-13 EPS to account for higher replanting costs, which were one of the reasons for the results shortfall,” it said.
CIMB Research said it maintained its Trading Buy call and target price (based on 11.3 times price-to-earnings) as it believes that investors have overlooked the stock’s undemanding valuations and solid dividend yields.
It said on Wednesday investors should discount Hap Seng Plantations’ 6% FY11 results shortfall and focus on its cheap ratings.
“It is the cheapest Malaysian planter in our universe, boasting an enterprise value per hectare that is below market price. We cut our FY12-13 EPS to account for higher replanting costs, which were one of the reasons for the results shortfall,” it said.
CIMB Research said it maintained its Trading Buy call and target price (based on 11.3 times price-to-earnings) as it believes that investors have overlooked the stock’s undemanding valuations and solid dividend yields.
