Hot Stock Jobstreet rises 5.7% on upgrades, share buyback

Business & Markets 2013
Written by Charlotte Chong of theedgemalaysia.com
Wednesday, 08 May 2013 11:10
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KUALA LUMPUR (May 8): Jobstreet Corp Bhd rose 5.7% after
HwangDBS Vickers Research Sdn Bhd upgraded the recruitmentservices
company to a “buy” from "hold" and raised its target price for
the latter by 87% to RM4.85 from RM2.60 previously.
The upgrade came amid an upward revision in earnings forecast by 1%
to 6% for Jobsreet by the research firm.
At 10:18am, Jobstreet which traded among top gainers across Bursa
Malaysia, changed hands at RM3.70, up 20 sen with some 35,400
shares done. The stock, however, pared gains to trade at RM3.60 at
11.06am.
HwangDBS Vickers analyst Kevin Wong said in a note that Jobstreet is
growing bigger than expected and overtaking rival JobsDB Singapore to take the lead in the recruitment-services market.
Wong said in the first quarter of this year, Jobstreet had performed better than he expected as it recorded higher job postings
and widened its lead with JobsDB.
“This (the growth) was more apparent in the Philippines and Indonesia with average postings in the first four months of this
year growing circa 25% year-on-year (in each country),” said Wong.
Wong said HwangDBS Vickers has raised its earnings forecast for Jobsreet by 1% to 6% to reflect stronger job postings and
better margins.
This comes on lower expenses as Jobstreet focuses on existing operations instead of new markets.
Meanwhile, gains in Jobstreet shares may also be due to the company buying back its own shares.
In an announcement to Bursa yesterday, Jobstreet said it had acquired 129,800 shares worth RM396.8 million from the
market between April 23 and 29 this year.