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CIMB Research maintains Outperform on Muhibbah, lowers target price
by Cals Mon 02 Sep 2013, 09:39
CIMB Research maintains Outperform on Muhibbah, lowers target price
Business & Markets 2013
Written by theedgemalaysia.com
Saturday, 31 August 2013 17:47
KUALA LUMPUR (Aug 31): CIMB Research has maintained its Outperform rating on Muhibbah Engineering Bhd at RM2.51 with a lower target price of RM2.97 (from RM3.18) and said Muhibbah's annualised 1H13 core net profit beat its full-year forecast by 9% but was in line with consensus.
In a note Aug 30, CIMB analyst Sharizan Rosely said the outperformance was due to overestimated tax rates but pretax numbers were in line.
He said the stock now offered attractive upside, adding that the turnaround story remained its appeal.
“We raise FY13-15 EPS forecasts on the back of lower tax rates. We cut RNAV/share by 7% as we update for balance sheet items and Favelle Favco's lower market value. Our RNAV target price falls despite an unchanged 30% RNAV discount.
“Order book recovery is expected across the board. Prospects are also spurred by oil & gas infrastructure. Maintain Outperform. Likely job wins in 2H form re-rating catalysts,” he said.
Business & Markets 2013
Written by theedgemalaysia.com
Saturday, 31 August 2013 17:47
KUALA LUMPUR (Aug 31): CIMB Research has maintained its Outperform rating on Muhibbah Engineering Bhd at RM2.51 with a lower target price of RM2.97 (from RM3.18) and said Muhibbah's annualised 1H13 core net profit beat its full-year forecast by 9% but was in line with consensus.
In a note Aug 30, CIMB analyst Sharizan Rosely said the outperformance was due to overestimated tax rates but pretax numbers were in line.
He said the stock now offered attractive upside, adding that the turnaround story remained its appeal.
“We raise FY13-15 EPS forecasts on the back of lower tax rates. We cut RNAV/share by 7% as we update for balance sheet items and Favelle Favco's lower market value. Our RNAV target price falls despite an unchanged 30% RNAV discount.
“Order book recovery is expected across the board. Prospects are also spurred by oil & gas infrastructure. Maintain Outperform. Likely job wins in 2H form re-rating catalysts,” he said.
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