Showing posts with label AJIYA. Show all posts
Showing posts with label AJIYA. Show all posts
January 19, 2012
October 24, 2011
OSK maintains 'buy' call on Ajiya
Stock Name: AJIYA
Company Name: AJIYA BHD
OSK Research Sdn Bhd has lowered Ajiya Bhd's net profit forecast by 12.1 per cent and 11 per cent for the financial years 2011 (FY11) and 2012, respectively.
"Ajiya reported nine-month FY11 results that were below our forecast," OSK said in a research note today.
It said Ajiya's revenue and net profit dwindled quarter-on-quarter by 14.5 per cent and 62.1 per cent, respectively, due to slower sales and rising raw material costs.
The research firm said the company continued to face challenges of rising input costs.
Despite lowering the net profit forecast, OSK maintained the positive view on Ajiya for FY12. It also maintained its "buy" recommendation with a lowered fair value (FV) to RM1.94 from RM2.17.
OSK said: "We still think Ajiya is a "buy", given the still significant price upside to our FV, and we still think it should benefit from the projects under the Economic Transformation Programme, which the company has been gearing up for since earlier this year." -- Bernama
Company Name: AJIYA BHD
| Research House: OSK | Price Call: BUY | Target Price: 1.94 |
OSK Research Sdn Bhd has lowered Ajiya Bhd's net profit forecast by 12.1 per cent and 11 per cent for the financial years 2011 (FY11) and 2012, respectively.
"Ajiya reported nine-month FY11 results that were below our forecast," OSK said in a research note today.
It said Ajiya's revenue and net profit dwindled quarter-on-quarter by 14.5 per cent and 62.1 per cent, respectively, due to slower sales and rising raw material costs.
The research firm said the company continued to face challenges of rising input costs.
Despite lowering the net profit forecast, OSK maintained the positive view on Ajiya for FY12. It also maintained its "buy" recommendation with a lowered fair value (FV) to RM1.94 from RM2.17.
OSK said: "We still think Ajiya is a "buy", given the still significant price upside to our FV, and we still think it should benefit from the projects under the Economic Transformation Programme, which the company has been gearing up for since earlier this year." -- Bernama
July 20, 2011
Ajiya gains on Q2 net income jump
Stock Name: AJIYA
Company Name: AJIYA BHD
Ajiya Bhd, a Malaysian building materials supplier, rose to its highest level in almost a month after second-quarter net income rose 13 per cent to RM7.2 million.
The stock gained 1.1 per cent to RM1.78 at 9:01 a.m. local time in Kuala Lumpur trading, set for its highest close since June 24. -- Bloomberg
Company Name: AJIYA BHD
| Research House: OSK | Price Call: BUY | Target Price: 2.17 |
Ajiya Bhd, a Malaysian building materials supplier, rose to its highest level in almost a month after second-quarter net income rose 13 per cent to RM7.2 million.
The stock gained 1.1 per cent to RM1.78 at 9:01 a.m. local time in Kuala Lumpur trading, set for its highest close since June 24. -- Bloomberg
July 12, 2011
Better outlook for Ajiya, but for 2H
Stock Name: AJIYA
Company Name: AJIYA BHD
Ajiya Bhd
(July 11, RM1.76)
Maintain buy at RM1.76 with revised target price of RM2.17 (from RM2.25): During our recent visit, Ajiya's management appeared confident that the Economic Transformation Programme (ETP) may have positive spillover effects on the building materials sector. It thinks that the Greater Kuala Lumpur National Key Economic Area (NKEAs) will be a big boost for the sector while key projects such as Kuala Lumpur International Financial District (KLIFD) and mass rapid transit system (MRT) may potentially lift demand for the company's products. However, the contribution from these projects is only expected from 2H or later in 2012 at the earliest.
The company is expanding its metal roll-forming and safety glass manufacturing operations in Senai (Johor), Shah Alam (Selangor), Bukit Minyak (Penang) and Sungai Petani (Kedah) as it prepares to increase its market share as the projects rolled out under ETP gain momentum. The company also plans to establish a plant in Thailand later in 2012.
After a weak 1QFY11, management said the slow start to the year was due to delays in implementation of projects which led to pallid sales volume, higher operating costs on escalating raw material costs and the fact that some customers had shifted to lower margin, cheaper products. While we suspect the company may encounter a similar situation in 2Q and we see almost flattish q-o-q numbers, we are more upbeat on its 2H posting better numbers. Our view is premised on the fact that its new plants are set to be commissioned in the next few months while demand may also pick up as the momentum of projects under the ETP gets going.
As we expect slower 1H results, our FY11 net profit assumption is lowered by 13.5% to RM20.7 million while we expect Ajiya's revenue to increase by a marginal 3.1% to RM340 million. Rolling forward our valuation parameter to the stock's FY12 earnings per share and tagging a price-earnings ratio of 6.6 times, we derive a fair value of RM2.17. We still think Ajiya is a 'buy' given the still sufficient upside to our fair value moving into FY12 as the industry outlook improves and its balance sheet remains robust. ' OSK Research, July 11
This article appeared in The Edge Financial Daily, July 12, 2011.
Company Name: AJIYA BHD
| Research House: OSK | Price Call: BUY | Target Price: 2.17 |
Ajiya Bhd
(July 11, RM1.76)
Maintain buy at RM1.76 with revised target price of RM2.17 (from RM2.25): During our recent visit, Ajiya's management appeared confident that the Economic Transformation Programme (ETP) may have positive spillover effects on the building materials sector. It thinks that the Greater Kuala Lumpur National Key Economic Area (NKEAs) will be a big boost for the sector while key projects such as Kuala Lumpur International Financial District (KLIFD) and mass rapid transit system (MRT) may potentially lift demand for the company's products. However, the contribution from these projects is only expected from 2H or later in 2012 at the earliest.
The company is expanding its metal roll-forming and safety glass manufacturing operations in Senai (Johor), Shah Alam (Selangor), Bukit Minyak (Penang) and Sungai Petani (Kedah) as it prepares to increase its market share as the projects rolled out under ETP gain momentum. The company also plans to establish a plant in Thailand later in 2012.
After a weak 1QFY11, management said the slow start to the year was due to delays in implementation of projects which led to pallid sales volume, higher operating costs on escalating raw material costs and the fact that some customers had shifted to lower margin, cheaper products. While we suspect the company may encounter a similar situation in 2Q and we see almost flattish q-o-q numbers, we are more upbeat on its 2H posting better numbers. Our view is premised on the fact that its new plants are set to be commissioned in the next few months while demand may also pick up as the momentum of projects under the ETP gets going.
As we expect slower 1H results, our FY11 net profit assumption is lowered by 13.5% to RM20.7 million while we expect Ajiya's revenue to increase by a marginal 3.1% to RM340 million. Rolling forward our valuation parameter to the stock's FY12 earnings per share and tagging a price-earnings ratio of 6.6 times, we derive a fair value of RM2.17. We still think Ajiya is a 'buy' given the still sufficient upside to our fair value moving into FY12 as the industry outlook improves and its balance sheet remains robust. ' OSK Research, July 11
This article appeared in The Edge Financial Daily, July 12, 2011.
April 8, 2011
AJIYA - OSK Research maintains Buy on Ajiya, FV RM2.25
Stock Name: AJIYA
Company Name: AJIYA BHD
Research House: OSK
KUALA LUMPUR: OSK Research said although Ajiya's management is of the view that higher operating costs and competition will erode the company's earnings performance this year, the macro fundamentals suggest otherwise.
It said on Friday, April 8 with the Government's Economic Transformation Plan adding some spark to the building materials sector, and hence benefiting the company.
'Slightly lowering our estimates on conservatism, we maintain our BUY recommendation on the stock with a revised FV of RM2.25,' it said.
Company Name: AJIYA BHD
Research House: OSK
KUALA LUMPUR: OSK Research said although Ajiya's management is of the view that higher operating costs and competition will erode the company's earnings performance this year, the macro fundamentals suggest otherwise.
It said on Friday, April 8 with the Government's Economic Transformation Plan adding some spark to the building materials sector, and hence benefiting the company.
'Slightly lowering our estimates on conservatism, we maintain our BUY recommendation on the stock with a revised FV of RM2.25,' it said.
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