Public Invest Research ups Uzma target price to RM2.86

KUALA LUMPUR: Public Investment Bank Research raised Uzma's target price from RM2.29 to RM2.86 after raising its price-to-earnings (P/E) multiple to 10 times.
"Despite
a revision of our target price we see Uzma fairly valued at these
levels, hence the maintaining of our Neutral call," it said on Thursday.
The
research house said Uzma's results for the first quarter ended March
31, 2013 were above its expectations and that of consensus. Net profit
surged 94% on-year (24% on-quarter) to RM9.4mil from RM4.8mil a year
ago.
The stronger financial performance was underpinned by all
business divisions as new job orders came in, while revenue increased by
61% on-year to RM88.9mil, boosted by the recognition of some long-term
contracts.
Public Invest Research said Uzma's orderbook was slightly more than RM1bil which was enough to last until 2015.
"Meanwhile, we expect second quarter numbers to be flattish due to possible delays in uzmAPRES installations," it said.