KUALA LUMPUR (May 3): CIMB Research has maintained its Trading Buy rating on UNISEM (M) BHD [] at RMq.46 with a target price of RM1.87 and said the company’s RM11 million 1Q12 loss arising from lower volumes and higher fixed costs was within expectations as 1Q is typically battered by seasonal weakness.
In a note May 3, the research house opined that Unisem’s earnings had bottomed and should recover strongly in the coming quarters.
“We continue to project RM59 million net profit for the full year. We reiterate our Trading Buy call given recently improving leading indicators.
“It is not an outperform yet as visibility is still lacking on the sustainability of this recovery. Our target price basis remains 1.25x FY13 P/BV, based on a 25% premium over its 5-year historical P/BV,” it said.
In a note May 3, the research house opined that Unisem’s earnings had bottomed and should recover strongly in the coming quarters.
“We continue to project RM59 million net profit for the full year. We reiterate our Trading Buy call given recently improving leading indicators.
“It is not an outperform yet as visibility is still lacking on the sustainability of this recovery. Our target price basis remains 1.25x FY13 P/BV, based on a 25% premium over its 5-year historical P/BV,” it said.
