KUALA LUMPUR (April 27): CIMB Research has maintained its Outperform rating on Daibochi Plastic & Packaging Industry Bhd with a target price of RM3.25 and said Daibochi’s 1Q12 results were within expectations.
The research house said on Friday that it expects Daibochi to secure maiden major orders from an Australian F&B player sometime this year.
“This could be the much-needed catalyst for the stock. Meanwhile, investors can get 6% return from dividends.
“Even though annualised 1Q12 net profit was 82% of our FY12 forecast, we consider this line with our and market expectations as we expect stronger earnings in the remaining quarters. We maintain our Outperform call and target price basis of 9x CY13 P/E, a 30% discount to our target market P/E,” it said.
The research house said on Friday that it expects Daibochi to secure maiden major orders from an Australian F&B player sometime this year.
“This could be the much-needed catalyst for the stock. Meanwhile, investors can get 6% return from dividends.
“Even though annualised 1Q12 net profit was 82% of our FY12 forecast, we consider this line with our and market expectations as we expect stronger earnings in the remaining quarters. We maintain our Outperform call and target price basis of 9x CY13 P/E, a 30% discount to our target market P/E,” it said.
