Stock Name: HARTA
Company Name: HARTALEGA HOLDINGS BHD
Buy this stock. Although its share price has risen by an impressive 30% YTD, we see more upside. Hartalega's 2013 PER of 10x is still a 45% discount to Top Glove's 19x, despite industry-beating profitability over the last two years. Most importantly, we see a major re-rating catalyst from a potential bonus issue. Fundamentally, Hartalega's operating environment remains impeccable owing to favourable input costs. The stock remains our top sector pick, with TP upgraded 25% to RM8.50 on a conservative 12x 2013 PER (DCF previously), still a 30% discount to Top Glove's 5-year average PER.
Maybank Research 2 Feb 2012
Click here for full report
Company Name: HARTALEGA HOLDINGS BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 8.50 |
Buy this stock. Although its share price has risen by an impressive 30% YTD, we see more upside. Hartalega's 2013 PER of 10x is still a 45% discount to Top Glove's 19x, despite industry-beating profitability over the last two years. Most importantly, we see a major re-rating catalyst from a potential bonus issue. Fundamentally, Hartalega's operating environment remains impeccable owing to favourable input costs. The stock remains our top sector pick, with TP upgraded 25% to RM8.50 on a conservative 12x 2013 PER (DCF previously), still a 30% discount to Top Glove's 5-year average PER.
Maybank Research 2 Feb 2012
Click here for full report
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