December 5, 2011

RHB Research ups Proton to trading buy, RM2.90

Stock Name: PROTON
Company Name: PROTON HOLDINGS BHD
Research House: RHBPrice Call: TRADING BUYTarget Price: 2.90



KUALA LUMPUR (Dec 5): RHB Research Institute has raised its outlook on PROTON HOLDINGS BHD [] to a trading buy and valued it as RM2.90.

It said on Monday at RM2.90, this would mean a 25% discount to its five-year average price-to-book (P/B) of 0.39 times applied to CY12 book value per share.

'The potential value of Proton would obviously depend on any M&A outcome. However, factoring in a speculative premium by valuing the stock at 0.5 times P/B (30% premium to 0.39 times) suggests a potential value of RM5.00 that also implies a price to net tangible asset of 0.66 times.

'The sale of Lotus could enhance valuations by RM2.36 a share over our base case valuation of RM2.90 and could lift the fair value to RM5.26 a share,' it said.

1 comment:

  1. "The sale of Lotus could improve estimates of the share of RM2.36 over our base case estimates could raise RM2.90 and RM5.26 fair value of share," it said.

    First Hour Trading

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