Monday, 9 April 2012

EITA debuts on Bursa with 22% premium

KUALA LUMPUR (April 9) : EITA Resources Bhd rose as much as 22% on Monday early trade during the elevator system provider’s debut on Bursa Malaysia.

The stock added 17 sen to an intraday high of 93 sen before trading lower at 88.5 sen with some 19 milllon shares done as at 9.17am. EITA was among the top gainers and most-actively traded entites across the exchange.

In a note, RHB Research Institute Sdn Bhd said it expects EITA to register an earnings compound annual growth rate of 14.4% between FY12 and FY14, helped by its new product development and higher demand for elevator systems.

“EITA’s dividend policy is to pay out at least 30% of its annual earnings. Therefore, we have forecast FY12 to FY14 annual net dividend per share of 3.6 sen and 4.4 sen. This translates to net yield of 4.3% to 5.3% based on our estimated fair value,” said RHB which has a target price of 83 sen for EITA shares.

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