RHB lifts Daibochi fair value

RHB Research raised its fair value for Daibochi Plastic and Packaging
Industry Bhd and also its estimate of the packaging material maker’s
2013 earnings, saying new multinational contracts would drive revenue in
the second half.


The research house raised its fair value for the company’s stock to RM3.08 per share from RM2.95.


RHB also raised its expectation of Daibochi’s 2013 earnings forecast by 4.6 per cent.


"We expect better revenue in the second half when the new contracts
from multinational companies start to kick in," RHB said in a note on
Friday.






Daibochi’s first quarter earnings, which came within estimates, was
underpinned by a "healthy turnover at its packaging business, decent
margins from a balanced product mix and good wastage controls", RHB
said.


The research house added that Daibochi’s 5.1 per cent dividend yield
continues to be attractive, despite a recent rally in its share price.


It kept its 'neutral' call on the shares of Daibochi, which rose
1.61 per cent versus the Malaysian benchmark stock index’s 0.18 gain.--
Reuters