Stock Name: MSM
Company Name: MSM MALAYSIA HOLDINGS BERHAD
MSMMalaysia Holdings - Just a sugarrush in 4Q
Target RM4.65
MSM's record performance in FY11 may not be sustainableas future profit margins could be crimped by higher raw material costs.But this is offset by the group's strong cash flows and dividend yieldprospects. FY11 net profit was in line at 101% of our forecast and 102%of consensus. The one sour note was the surprising absence of a final dividend.We fine-tune FY12-13 earnings for lower raw sugar costs, leading to a slightlyhigher target price (still based on 12.6x P/E). Maintain Neutral.
Company Name: MSM MALAYSIA HOLDINGS BERHAD
| Research House: CIMB | Price Call: BUY | Target Price: 4.65 |
MSMMalaysia Holdings - Just a sugarrush in 4Q
Target RM4.65
MSM's record performance in FY11 may not be sustainableas future profit margins could be crimped by higher raw material costs.But this is offset by the group's strong cash flows and dividend yieldprospects. FY11 net profit was in line at 101% of our forecast and 102%of consensus. The one sour note was the surprising absence of a final dividend.We fine-tune FY12-13 earnings for lower raw sugar costs, leading to a slightlyhigher target price (still based on 12.6x P/E). Maintain Neutral.
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