Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research maintains a Buy on CI Holdings with the potential re-rating catalysts being additional production capacity, and an increasingly marketable product line. "We note that CIH may be an effective indirect exposure to PepsiCo given that PepsiCo brands make up 85% of CIH's product portfolio and 80% of the company's revenue," it said in a research note on Friday, March 19. CIMB Equities Research maintains its earnings forecasts and target price of RM2.63, pegged to an unchanged 20% discount to its 15 times target market P/E given the stock's relatively low liquidity. CIH remains a BUY. CIH's Bangi plant is expected to hit maximum production in at least five years but Tropicana's wild success has shortened it to two years. To address the capacity constraint and allow for future growth, the company is now installing a RM45 million new production line. The new line will have the capacity to manufacture about RM300 million worth of products. "We maintain our earnings forecasts and target price of RM2.63, pegged to an unchanged 20% discount to our 15x target market P/E given the stock's relatively low liquidity," it said.
Company Name: C.I. HOLDINGS BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research maintains a Buy on CI Holdings with the potential re-rating catalysts being additional production capacity, and an increasingly marketable product line. "We note that CIH may be an effective indirect exposure to PepsiCo given that PepsiCo brands make up 85% of CIH's product portfolio and 80% of the company's revenue," it said in a research note on Friday, March 19. CIMB Equities Research maintains its earnings forecasts and target price of RM2.63, pegged to an unchanged 20% discount to its 15 times target market P/E given the stock's relatively low liquidity. CIH remains a BUY. CIH's Bangi plant is expected to hit maximum production in at least five years but Tropicana's wild success has shortened it to two years. To address the capacity constraint and allow for future growth, the company is now installing a RM45 million new production line. The new line will have the capacity to manufacture about RM300 million worth of products. "We maintain our earnings forecasts and target price of RM2.63, pegged to an unchanged 20% discount to our 15x target market P/E given the stock's relatively low liquidity," it said.
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