KUALA LUMPUR (Feb 21): RHB Research Institute remains positive about Daibochi’s long-term growth strategy and is maintaining its Market Perform call on the stock.
It said on Tuesday it had made some minor changes to the fair value estimate of RM2.78 a share (RM2.77 previously) based on 9.5 times FY12 EPS.
“We remain positive on Daibochi’s long-term growth strategy on the back of its emphasis in production innovation (including electronic packaging and medical), as well as its emphasis on Australia.
“Nevertheless, we remain cautious as there could still be risks of margin erosion due to the price volatility of raw material components (although raw material prices have recently stabilised),” said RHB Research.
It said on Tuesday it had made some minor changes to the fair value estimate of RM2.78 a share (RM2.77 previously) based on 9.5 times FY12 EPS.
“We remain positive on Daibochi’s long-term growth strategy on the back of its emphasis in production innovation (including electronic packaging and medical), as well as its emphasis on Australia.
“Nevertheless, we remain cautious as there could still be risks of margin erosion due to the price volatility of raw material components (although raw material prices have recently stabilised),” said RHB Research.
