Stock Name: DAYANG
Company Name: DAYANG ENTERPRISE HOLDINGS BHD
Research House: RHB
Company Name: DAYANG ENTERPRISE HOLDINGS BHD
Research House: RHB
RHB Research Institute Sdn Bhd has reduced financial year 2011-2013 earnings per share forecast for Dayang Enterprise by 35.2 per cent, 35.3 per cent and 35.4 per cent to adjust bonus and right issues.
The firm said it has increased the target price earning ratio (PER) of the stock by 17x from 15x previously as it believes the company's earnings have breached new levels that are even above its nearest peer, Petra Energy.
Earlier, Petra Energy traded at peak historical one year forward PERs of 18-20x.
"Our revised earnings forecasts and new target PER imply a new fair value of RM2.60 per share from RM3.54 per share previously," it said in its corporate highlights report today.
"While we are still positive on the company, we are downgrading our call on the stock to a 'market perform' from 'outperform' previously as we estimate the one-year return to be only 13 per cent in line with the estimated 10 per cent return for the market.
"We would consider re-rating the stock again for merger and acquisition activities or higher-than-expected contract wins," it added. - BERNAMA
The firm said it has increased the target price earning ratio (PER) of the stock by 17x from 15x previously as it believes the company's earnings have breached new levels that are even above its nearest peer, Petra Energy.
Earlier, Petra Energy traded at peak historical one year forward PERs of 18-20x.
"Our revised earnings forecasts and new target PER imply a new fair value of RM2.60 per share from RM3.54 per share previously," it said in its corporate highlights report today.
"While we are still positive on the company, we are downgrading our call on the stock to a 'market perform' from 'outperform' previously as we estimate the one-year return to be only 13 per cent in line with the estimated 10 per cent return for the market.
"We would consider re-rating the stock again for merger and acquisition activities or higher-than-expected contract wins," it added. - BERNAMA
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