Stock Name: LEADER
Company Name: LEADER UNIVERSAL HOLDINGS BHD
Research House: OSK
KUALA LUMPUR: OSK Research has maintained its buy call on LEADER UNIVERSAL HOLDINGS BHD [] at 86 sen and said on an annualised basis, Leader's results came in 42% below its expectations and 36.3% below consensus.
Its weaker year-on-year results were largely caused by a sharp increase in other operating expenses, which curtailed much of its growth, it said.
"On conservative grounds, we are now lowering our earnings estimates by 12.6% for FY10.
"We also lower our target price to RM1.05 from RM1.11 previously. Our valuations parameter however factors in a higher PE assumption for its cables and wires division at 9 times against 8 times previously as we see the company benefiting from the development of the SCORE region, which will open opportunities for Leader. Buy recommendation maintained," it said.
Company Name: LEADER UNIVERSAL HOLDINGS BHD
Research House: OSK
KUALA LUMPUR: OSK Research has maintained its buy call on LEADER UNIVERSAL HOLDINGS BHD [] at 86 sen and said on an annualised basis, Leader's results came in 42% below its expectations and 36.3% below consensus.
Its weaker year-on-year results were largely caused by a sharp increase in other operating expenses, which curtailed much of its growth, it said.
"On conservative grounds, we are now lowering our earnings estimates by 12.6% for FY10.
"We also lower our target price to RM1.05 from RM1.11 previously. Our valuations parameter however factors in a higher PE assumption for its cables and wires division at 9 times against 8 times previously as we see the company benefiting from the development of the SCORE region, which will open opportunities for Leader. Buy recommendation maintained," it said.
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