CIMB Research maintains Outperform on Tomypak, ups target price to RM1.71

Business & Markets 2013
Written by theedgemalaysia.com
Monday, 27 May 2013 08:28
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KUALA UMPUR (May 27): CIMB Research has maintained Outperform
on TOMYPAK HOLDINGS BHD [] at RM1.47 with a higher target price
of RM1.71 (from RM1.63) and said Tomypak’s annualised 1QFY13 core
net profit at only 62% of the research house’s full-year forecast was
below its expectations.
In a note Monday, the research house said the company blamed it on
higher production costs, adding Tomypak’s interim dividend per share
(DPS) of 2sen was however in line with its expectations.
“We cut our FY13-14 EPS forecasts but our target price rises as its
higher valuation (at 9.5x CY14 P/E) remains pegged at a 30% discount
to Daibochi’s revised 13.5x CY14 P/E target (previously at 10.8x P/E).
“Dividend yield is attractive at 5-6%. Catalysts include an EBITDA
margin recovery and securing more major MNC orders from the region.
Outperform maintained,” it said.