January 27, 2011

CIHLDG - OSK Research maintains Buy on CI Holdings at RM3.51, TP RM4.47

Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Research House: OSK

KUALA LUMPUR: OSK Research said CI Holdings reported a respectable on-year revenue and earnings growth of 26% and 43% to RM300.2 million and RM23.1 million respectively for 1HFY11, which were within its and consensus forecasts.

The research house said on Thursday, Jan 27 the hearty numbers were mainly attributed to the beverage division. Despite spiralling raw material prices, EBIT margin improved by 1.1 percentage points on-year due to better cost efficiency, economies of scale, higher other operating income and stronger RM against USD.

'With the results being in line, we maintain our FY11 and FY12 earnings forecasts at RM42.3 million and RM48.5 million respectively. Maintain BUY at RM3.51,' it said.

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