Stock Name: MSM
Company Name: MSM MALAYSIA HOLDINGS BERHAD
KUALA LUMPUR: CIMB Equities Research has initiated coverage of MSM Holdings Bhd'' with a NEUTRAL call and a target price of RM5.50, which is based on 13 times forward P/E or a 10% discount to its target market P/E of 14.5 times.
It said on Thursday, Aug 4 the dividend yield of 5.5% will provide share price support.
MSM Holdings is currently in a sweet spot, thanks to its 57% share of Malaysia's refined sugar market. Current-year earnings growth prospects are also favourable, aided by a strong ringgit and higher selling prices.
'But these pluses are offset by uncertain raw sugar costs in 2012, slower demand growth as well as rising competition and fuel costs,' it said.
Company Name: MSM MALAYSIA HOLDINGS BERHAD
| Research House: CIMB | Price Call: BUY | Target Price: 5.50 |
KUALA LUMPUR: CIMB Equities Research has initiated coverage of MSM Holdings Bhd'' with a NEUTRAL call and a target price of RM5.50, which is based on 13 times forward P/E or a 10% discount to its target market P/E of 14.5 times.
It said on Thursday, Aug 4 the dividend yield of 5.5% will provide share price support.
MSM Holdings is currently in a sweet spot, thanks to its 57% share of Malaysia's refined sugar market. Current-year earnings growth prospects are also favourable, aided by a strong ringgit and higher selling prices.
'But these pluses are offset by uncertain raw sugar costs in 2012, slower demand growth as well as rising competition and fuel costs,' it said.
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