Stock Name: EPMB
Company Name: EP MANUFACTURING BHD
Research House: OSK
KUALA LUMPUR: EP MANUFACTURING BHD [] shares advanced in early trade on Friday, April 29 after OSK Research maintained its buy call on the stock and raised its target price to 89 sen from 78.7 sen previously.
At 9.35am, EPMB was up 3.5 sen to 80 sen with 2.32 million shares done.
OSK Research in a note April 29 said that while EPMB's earnings were better than expected (with Q1 representing 40% of its full-year forecast) owing to the low amortization rate, the research house preferred to be cautious and make no changes to its PBT forecast as it saw Perodua being hit by a components supply shortage.
'However, given the lower effective tax foreseen over the immediate to medium term, we are nudging up our bottomline earnings by some 13% for FY11-FY13 and revise upward our target price from 78.7 sen to 89 sen, with our Buy call retained.
'EPMB still offers decent upside given its attractive valuation as the stock is still trading below its 8-9x historical forward PE. At 5.2 times FY11 EPS, some 50% of its share price is made up of free cash flow. Maintain Buy,' it said.
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Company Name: EP MANUFACTURING BHD
Research House: OSK
KUALA LUMPUR: EP MANUFACTURING BHD [] shares advanced in early trade on Friday, April 29 after OSK Research maintained its buy call on the stock and raised its target price to 89 sen from 78.7 sen previously.
At 9.35am, EPMB was up 3.5 sen to 80 sen with 2.32 million shares done.
OSK Research in a note April 29 said that while EPMB's earnings were better than expected (with Q1 representing 40% of its full-year forecast) owing to the low amortization rate, the research house preferred to be cautious and make no changes to its PBT forecast as it saw Perodua being hit by a components supply shortage.
'However, given the lower effective tax foreseen over the immediate to medium term, we are nudging up our bottomline earnings by some 13% for FY11-FY13 and revise upward our target price from 78.7 sen to 89 sen, with our Buy call retained.
'EPMB still offers decent upside given its attractive valuation as the stock is still trading below its 8-9x historical forward PE. At 5.2 times FY11 EPS, some 50% of its share price is made up of free cash flow. Maintain Buy,' it said.
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