Stock Name: GAB
Company Name: GUINNESS ANCHOR BHD
Research House: AMMB
KUALA LUMPUR: AmResearch is downgrading GUINNESS ANCHOR BHD [] (GAB) to HOLD.
It said on Thursday, Aug 5 that despite the group's still positive earnings prospects, its higher fair value of RM8.62/share (at parity to DCF-estimates) offered limited upside potential (<15%)'' and valuation is no longer attractive.
GAB's earnings for the 12 months ended 30 June was up a decent 8% YoY to RM153mil, meeting AmResearch's full-year forecast as well as consensus estimates.
Year-to-date, GAB maintained its leadership position with 57% market share, and circa 70% of industry profit pool.
'In view of GAB's proven track record in maintaining its leadership position with 57% market share in the duopoly industry, we have removed the 10% discount to our DCF-based valuation model.
'Consequently, we arrive at our higher fair value of RM8.62/share (previously RM7.50/share) based at parity to our DCF-estimates,' it said.
Company Name: GUINNESS ANCHOR BHD
Research House: AMMB
KUALA LUMPUR: AmResearch is downgrading GUINNESS ANCHOR BHD [] (GAB) to HOLD.
It said on Thursday, Aug 5 that despite the group's still positive earnings prospects, its higher fair value of RM8.62/share (at parity to DCF-estimates) offered limited upside potential (<15%)'' and valuation is no longer attractive.
GAB's earnings for the 12 months ended 30 June was up a decent 8% YoY to RM153mil, meeting AmResearch's full-year forecast as well as consensus estimates.
Year-to-date, GAB maintained its leadership position with 57% market share, and circa 70% of industry profit pool.
'In view of GAB's proven track record in maintaining its leadership position with 57% market share in the duopoly industry, we have removed the 10% discount to our DCF-based valuation model.
'Consequently, we arrive at our higher fair value of RM8.62/share (previously RM7.50/share) based at parity to our DCF-estimates,' it said.
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