Stock Name: TOMYPAK
Company Name: TOMYPAK HOLDINGS BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research ups target price for Tomypak to RM4.96 from RM4.66 on expectations of higher margins.
It said on Friday, April 23 during a recent meeting Tomypak voiced its optimism over the prospects for this year, driven by projected orders from its existing major customers and rising demand for its high barrier metallised packaging products.
Shareholders are also likely to be rewarded with much higher dividends this year. Accordingly, CIMB Research raised its FY10-12 net dividend payout ratio from 24% to 27%, which increases our FY10 net DPS from 12 sen to 14 sen.
"We also raise our FY10-12 EBITDA margins by 1.2-2.0% pts for rising sales from its higher margin metallised packaging product. This ups FY10-12 EPS forecasts by 6-11%, leading to a higher target price of RM4.96 (RM4.66)," it said.
CIMB Equities Research said its target basis remains 8.4x CY11 P/E, a 30% discount to Daibochi's 12x target P/E.
"Tomypak remains an OUTPERFORM. Factors that could catalyse the stock include further margin expansion and stronger-than-expected revenue growth over the next few quarters," it said.
Company Name: TOMYPAK HOLDINGS BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research ups target price for Tomypak to RM4.96 from RM4.66 on expectations of higher margins.
It said on Friday, April 23 during a recent meeting Tomypak voiced its optimism over the prospects for this year, driven by projected orders from its existing major customers and rising demand for its high barrier metallised packaging products.
Shareholders are also likely to be rewarded with much higher dividends this year. Accordingly, CIMB Research raised its FY10-12 net dividend payout ratio from 24% to 27%, which increases our FY10 net DPS from 12 sen to 14 sen.
"We also raise our FY10-12 EBITDA margins by 1.2-2.0% pts for rising sales from its higher margin metallised packaging product. This ups FY10-12 EPS forecasts by 6-11%, leading to a higher target price of RM4.96 (RM4.66)," it said.
CIMB Equities Research said its target basis remains 8.4x CY11 P/E, a 30% discount to Daibochi's 12x target P/E.
"Tomypak remains an OUTPERFORM. Factors that could catalyse the stock include further margin expansion and stronger-than-expected revenue growth over the next few quarters," it said.
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