Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Company Name: C.I. HOLDINGS BHD
| Research House: CIMB | Price Call: SELL | Target Price: 0.82 |
Showing posts with label CIHLDG. Show all posts
Showing posts with label CIHLDG. Show all posts
May 9, 2013
February 4, 2013
CI Holdings - 2QFY13 RESULTS - Still looking around for a new business
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Company Name: C.I. HOLDINGS BHD
| Research House: CIMB | Price Call: SELL | Target Price: 0.82 |
November 8, 2012
CI Holdings - 1QFY13 RESULTS - Slowdown in tapware business
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Company Name: C.I. HOLDINGS BHD
| Research House: CIMB | Price Call: SELL | Target Price: 0.73 |
January 20, 2012
In Hot Pursuit of D.B.E. Gurney?
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Company Name: C.I. HOLDINGS BHD
| Research House: OSK | Price Call: SELL | Target Price: 0.99 |
November 16, 2011
CI Holdings' numbers sour on higher costs
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
CI Holdings Bhd
(Nov 16, RM5.23)
Downgrade to neutral at RM5.28 with revised fair value of RM5.59 (from RM5.66): CIH's 1QFY12 net profit (Permanis Sdn Bhd and DOE Industries Sdn Bhd) sank 37% to RM7.3 million year-on-year (y-o-y). When annualised, this is below our previous full-year forecast (disposal not factored in) of RM41.3 million. The weaker-than-expected results were due to: (i) the increase in sugar price after the subsidy on sugar was removed in January 2011; (ii) higher finance costs due to additional financing for new assets; and (iii) delays in completion of various developers' projects amid softening demand owing to uncertain global economic conditions and the tightening of property loan regulations to curb speculation. By operation division, continuing operations (DOE + CIH) sales slipped 17.3% and bottom line slipped into a net loss while Permanis' top line was higher by 7.4% but bottom line was down 33%. DOE sales were impacted by delays in completion of property development projects while Permanis sales got a boost from the Hari Raya Aidilfitri promotion campaign.
Permanis' gross profit margin dipped two percentage points (pps) y-o-y to 38.1%, largely due to the withdrawal of the sugar subsidy, while DOE's gross profit margin improved marginally by 0.4 pps to 26.4%. However, Permanis' operating profit shrank by a larger 3.2% y-o-y to 7.5% on higher operating expenses and lower operating income in addition to higher cost of sales, whereas DOE's margin dipped 7.6 pps to 2.6% mainly due to the recognition of a foreign exchange gain in the previous year. DOE's lower profit was also due to the fact that expenses at the holding company level were solely borne by DOE. When normalised, DOE's 1QFY12 net profit totalled about RM500,000.
While there are numerous acquisition proposals involving various industries on CIH's table, the company has ruled out industries such as construction, oil and gas, plantation and biotech where technical know-how is required. Management hopes to identify an acquisition target within 12 months. We are cutting our FY12/FY13 earnings forecasts by 18.2% to 23% to RM18.5 million and RM6.1 million respectively to incorporate the weaker results from DOE and Permanis, as well as higher interest income based on management's timeline guidance. We are downgrading the stock to 'neutral' given the less than 10% upside. ' OSK Research, Nov 16
This article appeared in The Edge Financial Daily, November 17, 2011.
Company Name: C.I. HOLDINGS BHD
| Research House: OSK | Price Call: HOLD | Target Price: 5.59 |
CI Holdings Bhd
(Nov 16, RM5.23)
Downgrade to neutral at RM5.28 with revised fair value of RM5.59 (from RM5.66): CIH's 1QFY12 net profit (Permanis Sdn Bhd and DOE Industries Sdn Bhd) sank 37% to RM7.3 million year-on-year (y-o-y). When annualised, this is below our previous full-year forecast (disposal not factored in) of RM41.3 million. The weaker-than-expected results were due to: (i) the increase in sugar price after the subsidy on sugar was removed in January 2011; (ii) higher finance costs due to additional financing for new assets; and (iii) delays in completion of various developers' projects amid softening demand owing to uncertain global economic conditions and the tightening of property loan regulations to curb speculation. By operation division, continuing operations (DOE + CIH) sales slipped 17.3% and bottom line slipped into a net loss while Permanis' top line was higher by 7.4% but bottom line was down 33%. DOE sales were impacted by delays in completion of property development projects while Permanis sales got a boost from the Hari Raya Aidilfitri promotion campaign.
Permanis' gross profit margin dipped two percentage points (pps) y-o-y to 38.1%, largely due to the withdrawal of the sugar subsidy, while DOE's gross profit margin improved marginally by 0.4 pps to 26.4%. However, Permanis' operating profit shrank by a larger 3.2% y-o-y to 7.5% on higher operating expenses and lower operating income in addition to higher cost of sales, whereas DOE's margin dipped 7.6 pps to 2.6% mainly due to the recognition of a foreign exchange gain in the previous year. DOE's lower profit was also due to the fact that expenses at the holding company level were solely borne by DOE. When normalised, DOE's 1QFY12 net profit totalled about RM500,000.
While there are numerous acquisition proposals involving various industries on CIH's table, the company has ruled out industries such as construction, oil and gas, plantation and biotech where technical know-how is required. Management hopes to identify an acquisition target within 12 months. We are cutting our FY12/FY13 earnings forecasts by 18.2% to 23% to RM18.5 million and RM6.1 million respectively to incorporate the weaker results from DOE and Permanis, as well as higher interest income based on management's timeline guidance. We are downgrading the stock to 'neutral' given the less than 10% upside. ' OSK Research, Nov 16
This article appeared in The Edge Financial Daily, November 17, 2011.
July 5, 2011
CI Holdings update - Quenching Asahi's thirst for M&A?
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Company Name: C.I. HOLDINGS BHD
| Research House: CIMB | Price Call: BUY | Target Price: 4.78 |
C.I. Holdings advances in early trade
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
KUALA LUMPUR: ''C.I. HOLDINGS BHD [] shares rose in early trade on Tuesday, July 5 following reports that Asahi Group Holdings'' Ltd'' of'' Japan'' was'' in'' talks with'' CI'' Holdings'' (CIH)'' over'' the'' purchase'' of'' its'' subsidiary, ''Permanis Sdn Bhd for US$200 million (RM600 million).
At 9.05am, C.I. Holdings added 14 sen to RM3.44 with 91,400 shares done.
MIDF Research in a note said it had been reported that that Asahi ''had'' been'' eyeing'' Permanis'' (which'' is'' PepsiCo'' Inc's'' bottler'' in ''Malaysia)'' to expand and drive stronger growth'' for'' its business ''and increase its presence in the global market.
The research house reiterated its BUY recommendation on CIH with an unchanged target price of RM3.92, implying a PER12 of 13 times.
'We believe CIH's valuation is still attractive as it is currently trading at a steep 31.55 discount to F&N's valuation of 19 times PER,' it said.
Company Name: C.I. HOLDINGS BHD
| Research House: MIDF | Price Call: BUY | Target Price: 3.92 |
KUALA LUMPUR: ''C.I. HOLDINGS BHD [] shares rose in early trade on Tuesday, July 5 following reports that Asahi Group Holdings'' Ltd'' of'' Japan'' was'' in'' talks with'' CI'' Holdings'' (CIH)'' over'' the'' purchase'' of'' its'' subsidiary, ''Permanis Sdn Bhd for US$200 million (RM600 million).
At 9.05am, C.I. Holdings added 14 sen to RM3.44 with 91,400 shares done.
MIDF Research in a note said it had been reported that that Asahi ''had'' been'' eyeing'' Permanis'' (which'' is'' PepsiCo'' Inc's'' bottler'' in ''Malaysia)'' to expand and drive stronger growth'' for'' its business ''and increase its presence in the global market.
The research house reiterated its BUY recommendation on CIH with an unchanged target price of RM3.92, implying a PER12 of 13 times.
'We believe CIH's valuation is still attractive as it is currently trading at a steep 31.55 discount to F&N's valuation of 19 times PER,' it said.
CI Holdings update - Quenching Asahi's thirst for M&A?
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Company Name: C.I. HOLDINGS BHD
| Research House: CIMB | Price Call: BUY | Target Price: 4.78 |
June 20, 2011
CI Holdings: New product launching soon, margins to remain stable
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
CI Holdings Bhd
(June 20, RM3.08)
Maintain market perform at RM3.05 with revised fair value of RM3.30 (from RM3): We recently visited CI Holdings' (CIH) factory in Bangi where we viewed its production lines for both its carbonated and non-carbonated products. One of the key interests of the tour was the new non-carbonated line which was installed in September 2010.
The new line, which cost approximately RM45 million, increased CIH's non-carbonated capacity by 70% to 80% as it operates at a much faster speed than the previous two lines. CIH's maximum annual non-carbonated capacity in terms of revenue was thus increased to about RM560 million per year (from about RM300 million), although it is currently only utilising about 40% to 45%.
We understand that CIH is planning to launch a new non-carbonated product within these two weeks. It has already launched Revive Lime Burst (carbonated) in 1QFY11, followed by the launch of Tropicana Twister Blackcurrant (non-carbonated) in 2QFY11. In 3QFY11, CIH launched a new logo and packaging for its Revive products.
Although the management would not reveal any details about the new product, we believe it could be another variant of Tropicana Twister, as we expect CIH to continue to leverage on its strong brand equity and market leadership position.
We understand that CIH has locked in its sugar requirements until the end of 2012 at somewhere between RM2.60 to RM2.70 per kg, as it was locked in sometime in 3QFY11.
This is in line with our estimate of about RM2.63 per kg for 2HFY11 and 1HFY12. From 2HFY12 onwards, CIH's sugar costs would depend on the new long-term contract (LTC) negotiated by the government for raw sugar.
We are keeping our sugar cost assumptions for FY11/12, although for FY13, we are reducing our assumptions slightly as we expect sugar prices to remain fairly stable from 2012 to 2015 due to the government LTC. We have previously assumed a sugar cost rise of about 8% for FY13, which we have now changed to a flat price assumption from FY12.
The risks include: (i) a significant drop in demand; (ii) significant increase in raw material prices such as crude oil and sugar; and (iii) foreign exchange risk as CIH buys concentrate from PepsiCo in US dollars.
Our FY13 ending June earnings forecast is increased by 15.2% after imputing our new flat sugar cost assumptions for the year, while our FY11/12 forecasts are unchanged.
Our fair value is increased to RM3.30 (from RM3.00 previously) after rolling forward our valuations to 11 times CY12 (from CY11 previously). We maintain our 'market perform' call on the stock. A near-term re-rating catalyst could be its venture into the snack manufacturing business, depending on the valuations and synergistic benefits. ' RHB Research, June 20
This article appeared in The Edge Financial Daily, June 21, 2011.
Company Name: C.I. HOLDINGS BHD
| Research House: RHB | Price Call: HOLD | Target Price: 3.30 |
CI Holdings Bhd
(June 20, RM3.08)
Maintain market perform at RM3.05 with revised fair value of RM3.30 (from RM3): We recently visited CI Holdings' (CIH) factory in Bangi where we viewed its production lines for both its carbonated and non-carbonated products. One of the key interests of the tour was the new non-carbonated line which was installed in September 2010.
The new line, which cost approximately RM45 million, increased CIH's non-carbonated capacity by 70% to 80% as it operates at a much faster speed than the previous two lines. CIH's maximum annual non-carbonated capacity in terms of revenue was thus increased to about RM560 million per year (from about RM300 million), although it is currently only utilising about 40% to 45%.
We understand that CIH is planning to launch a new non-carbonated product within these two weeks. It has already launched Revive Lime Burst (carbonated) in 1QFY11, followed by the launch of Tropicana Twister Blackcurrant (non-carbonated) in 2QFY11. In 3QFY11, CIH launched a new logo and packaging for its Revive products.
Although the management would not reveal any details about the new product, we believe it could be another variant of Tropicana Twister, as we expect CIH to continue to leverage on its strong brand equity and market leadership position.
We understand that CIH has locked in its sugar requirements until the end of 2012 at somewhere between RM2.60 to RM2.70 per kg, as it was locked in sometime in 3QFY11.
This is in line with our estimate of about RM2.63 per kg for 2HFY11 and 1HFY12. From 2HFY12 onwards, CIH's sugar costs would depend on the new long-term contract (LTC) negotiated by the government for raw sugar.
We are keeping our sugar cost assumptions for FY11/12, although for FY13, we are reducing our assumptions slightly as we expect sugar prices to remain fairly stable from 2012 to 2015 due to the government LTC. We have previously assumed a sugar cost rise of about 8% for FY13, which we have now changed to a flat price assumption from FY12.
The risks include: (i) a significant drop in demand; (ii) significant increase in raw material prices such as crude oil and sugar; and (iii) foreign exchange risk as CIH buys concentrate from PepsiCo in US dollars.
Our FY13 ending June earnings forecast is increased by 15.2% after imputing our new flat sugar cost assumptions for the year, while our FY11/12 forecasts are unchanged.
Our fair value is increased to RM3.30 (from RM3.00 previously) after rolling forward our valuations to 11 times CY12 (from CY11 previously). We maintain our 'market perform' call on the stock. A near-term re-rating catalyst could be its venture into the snack manufacturing business, depending on the valuations and synergistic benefits. ' RHB Research, June 20
This article appeared in The Edge Financial Daily, June 21, 2011.
April 25, 2011
CIHLDG - CI Holdings feeling a sugar rush
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Research House: CIMB
CI Holdings Bhd
(April 22, RM2.90)
Maintain buy at RM2.94 with target price of RM4.78: Sugar was the main topic of discussion at last week's post-3QFY6/11 briefing. CIH has no plans to raise selling prices yet even though it is now paying a market price of around RM2.62/kg for sugar, 38% higher than the last subsidised price of RM1.90/kg. Other highlights are i) a continued rise in sales of non-carbonated drinks, and ii) improvement of infrastructure through a new PET line.
Our EPS forecasts are intact, which, together with an unchanged valuation basis of parity with our 14.5 times CY12 target market P/E, keeps our target price at RM4.78. We continue to rate CIH a 'buy' and our top F&B pick given the potential catalysts of i) an increasingly marketable product line, and ii) M&A.
Thanks to its recent price weakness, the stock is now an attractive investment proposition, offering single-digit FY12-13 P/Es and 4.1% dividend yield.
In 3Q11, sugar accounted for 20% of the cost of goods sold, up from 15% in 3Q10. Despite the cost pressure, CIH has not raised the selling prices of its drinks, not even for the juices under the Tropicana brand, which is the market leader. Instead, the company has opted to control selectively its price discounting and trade promotions. Depending on products and sales channels, CIH's price discounts can be as much as 7%.
CIH's top three bestselling brands are Twister, Pepsi and Mirinda. The introduction of Tropicana Twister in March 2008 has taken non-carbonated drinks from 20% of CIH's beverage sales a few years ago to 43% in 3Q11. CIH is aiming for a 50:50 sales split between carbonated and noncarbonated in the next few years.
After investing RM45 million on a new production line and RM29.5 million on a new warehouse in FY11, CIH plans to spend around RM20 million-25 million on a new line that can produce 600-litre PET bottles next year.
The company is also looking to expand its retail coverage to 45,000 outlets and roll out 19,000 chillers by end-FY11. ' CIMB Research, April 22
This article appeared in The Edge Financial Daily, April 25, 2011.
Company Name: C.I. HOLDINGS BHD
Research House: CIMB
CI Holdings Bhd
(April 22, RM2.90)
Maintain buy at RM2.94 with target price of RM4.78: Sugar was the main topic of discussion at last week's post-3QFY6/11 briefing. CIH has no plans to raise selling prices yet even though it is now paying a market price of around RM2.62/kg for sugar, 38% higher than the last subsidised price of RM1.90/kg. Other highlights are i) a continued rise in sales of non-carbonated drinks, and ii) improvement of infrastructure through a new PET line.
Our EPS forecasts are intact, which, together with an unchanged valuation basis of parity with our 14.5 times CY12 target market P/E, keeps our target price at RM4.78. We continue to rate CIH a 'buy' and our top F&B pick given the potential catalysts of i) an increasingly marketable product line, and ii) M&A.
Thanks to its recent price weakness, the stock is now an attractive investment proposition, offering single-digit FY12-13 P/Es and 4.1% dividend yield.
In 3Q11, sugar accounted for 20% of the cost of goods sold, up from 15% in 3Q10. Despite the cost pressure, CIH has not raised the selling prices of its drinks, not even for the juices under the Tropicana brand, which is the market leader. Instead, the company has opted to control selectively its price discounting and trade promotions. Depending on products and sales channels, CIH's price discounts can be as much as 7%.
CIH's top three bestselling brands are Twister, Pepsi and Mirinda. The introduction of Tropicana Twister in March 2008 has taken non-carbonated drinks from 20% of CIH's beverage sales a few years ago to 43% in 3Q11. CIH is aiming for a 50:50 sales split between carbonated and noncarbonated in the next few years.
After investing RM45 million on a new production line and RM29.5 million on a new warehouse in FY11, CIH plans to spend around RM20 million-25 million on a new line that can produce 600-litre PET bottles next year.
The company is also looking to expand its retail coverage to 45,000 outlets and roll out 19,000 chillers by end-FY11. ' CIMB Research, April 22
This article appeared in The Edge Financial Daily, April 25, 2011.
April 22, 2011
CIHLDG - CIMB Research rates CI Holdings a Buy, TP RM4.78
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research said sugar was the main topic of discussion at the Thursday, April 21 post-3QFY6/11 briefing by CI Holdings Bhd.
It said on Friday, April 22 CIH has no plans to raise selling prices yet even though it is now paying a market price of around RM2.62/kg for sugar, 38% higher than the last subsidised price of RM1.90/kg.
'Other highlights are 1) a continued rise in sales of non-carbonated drinks, and 2) improvement of infrastructure through a new PET line. Our EPS forecasts are intact, which, together with an unchanged valuation basis of parity with our 14.5x CY12 target market P/E, keeps our target price at RM4.78.
'We continue to rate CIH a BUY and our top F&B pick given the potential catalysts of 1) an increasingly marketable product line, and 2) M&A. Thanks to its recent price weakness, the stock is now an attractive investment proposition, offering single-digit FY12-13 P/Es and 4.1% dividend yield,' CIMB Equities Research said.
Company Name: C.I. HOLDINGS BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research said sugar was the main topic of discussion at the Thursday, April 21 post-3QFY6/11 briefing by CI Holdings Bhd.
It said on Friday, April 22 CIH has no plans to raise selling prices yet even though it is now paying a market price of around RM2.62/kg for sugar, 38% higher than the last subsidised price of RM1.90/kg.
'Other highlights are 1) a continued rise in sales of non-carbonated drinks, and 2) improvement of infrastructure through a new PET line. Our EPS forecasts are intact, which, together with an unchanged valuation basis of parity with our 14.5x CY12 target market P/E, keeps our target price at RM4.78.
'We continue to rate CIH a BUY and our top F&B pick given the potential catalysts of 1) an increasingly marketable product line, and 2) M&A. Thanks to its recent price weakness, the stock is now an attractive investment proposition, offering single-digit FY12-13 P/Es and 4.1% dividend yield,' CIMB Equities Research said.
January 28, 2011
CIHLDG - Squeeze C I Holdings into your portfolio
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Research House: CIMB
C.I. Holdings Bhd
(Jan 27, RM3.60)
Maintain buy at RM3.51 with target price RM5.15: C I Holdings' (CIH) 2QFY11 from June net profit of RM11.3 million took 1H bottom line to RM23.1 million, which accounted for 54% of our full-year forecast and 53% of consensus estimate. We consider it to be broadly in line with expectations as 4Q is expected to be slow due to the absence of major festivities. Also not surprising is the interim dividend per share of five sen, higher than 1H10's four sen. We maintain our EPS forecasts and target price of RM5.15, pegged to an unchanged target market PER of 14.5 times. CIH remains a 'buy' and our top F&B pick, underpinned by the potential catalysts of an increasingly marketable product line and M&A. We view the recent share price weakness as a buying opportunity.
Net profit in 2Q11 jumped 43% year-on-year, aided mostly by new capacity and an aggressive distribution drive. The new RM45 million production line for non-carbonated drinks in Bangi started operations in September 2010 as scheduled. Tropicana Twister blackcurrant, which was unveiled in December 2010, is produced at the new facility. The extra capacity has also allowed the production of Lipton and Gatorade to be progressively taken back from contract packers to Bangi. Another major growth factor is a wider retail reach. As at June 2010, CIH's beverages are distributed at 42,000 outlets, an improvement over 36,595 as at June 2009. Fast-food outlets, hypermarkets and convenience stores make up CIH's major accounts. The company plans to expand its distribution outlets to 45,000 by June 2011.
The non-carbonated beverages led the double-digit year-on-year growth, with Tropicana remaining the bestseller. From a 20:80 sales split between non-carbonated and carbonated portfolios a few years ago, non-carbonated drinks made up about 40% of 2Q11 revenue, thanks to the popularity of Tropicana. With the start of the new production line in September 2010, CIH aims for a 50:50 sales contribution between non-carbonated and carbonated drinks over the next few years. ' CIMB Research, Jan 27
This article appeared in The Edge Financial Daily, January 28, 2011.
Company Name: C.I. HOLDINGS BHD
Research House: CIMB
C.I. Holdings Bhd
(Jan 27, RM3.60)
Maintain buy at RM3.51 with target price RM5.15: C I Holdings' (CIH) 2QFY11 from June net profit of RM11.3 million took 1H bottom line to RM23.1 million, which accounted for 54% of our full-year forecast and 53% of consensus estimate. We consider it to be broadly in line with expectations as 4Q is expected to be slow due to the absence of major festivities. Also not surprising is the interim dividend per share of five sen, higher than 1H10's four sen. We maintain our EPS forecasts and target price of RM5.15, pegged to an unchanged target market PER of 14.5 times. CIH remains a 'buy' and our top F&B pick, underpinned by the potential catalysts of an increasingly marketable product line and M&A. We view the recent share price weakness as a buying opportunity.
Net profit in 2Q11 jumped 43% year-on-year, aided mostly by new capacity and an aggressive distribution drive. The new RM45 million production line for non-carbonated drinks in Bangi started operations in September 2010 as scheduled. Tropicana Twister blackcurrant, which was unveiled in December 2010, is produced at the new facility. The extra capacity has also allowed the production of Lipton and Gatorade to be progressively taken back from contract packers to Bangi. Another major growth factor is a wider retail reach. As at June 2010, CIH's beverages are distributed at 42,000 outlets, an improvement over 36,595 as at June 2009. Fast-food outlets, hypermarkets and convenience stores make up CIH's major accounts. The company plans to expand its distribution outlets to 45,000 by June 2011.
The non-carbonated beverages led the double-digit year-on-year growth, with Tropicana remaining the bestseller. From a 20:80 sales split between non-carbonated and carbonated portfolios a few years ago, non-carbonated drinks made up about 40% of 2Q11 revenue, thanks to the popularity of Tropicana. With the start of the new production line in September 2010, CIH aims for a 50:50 sales contribution between non-carbonated and carbonated drinks over the next few years. ' CIMB Research, Jan 27
This article appeared in The Edge Financial Daily, January 28, 2011.
January 27, 2011
CIHLDG - OSK Research maintains Buy on CI Holdings at RM3.51, TP RM4.47
Stock Name: CIHLDG
Company Name: C.I. HOLDINGS BHD
Research House: OSK
KUALA LUMPUR: OSK Research said CI Holdings reported a respectable on-year revenue and earnings growth of 26% and 43% to RM300.2 million and RM23.1 million respectively for 1HFY11, which were within its and consensus forecasts.
The research house said on Thursday, Jan 27 the hearty numbers were mainly attributed to the beverage division. Despite spiralling raw material prices, EBIT margin improved by 1.1 percentage points on-year due to better cost efficiency, economies of scale, higher other operating income and stronger RM against USD.
'With the results being in line, we maintain our FY11 and FY12 earnings forecasts at RM42.3 million and RM48.5 million respectively. Maintain BUY at RM3.51,' it said.
Company Name: C.I. HOLDINGS BHD
Research House: OSK
KUALA LUMPUR: OSK Research said CI Holdings reported a respectable on-year revenue and earnings growth of 26% and 43% to RM300.2 million and RM23.1 million respectively for 1HFY11, which were within its and consensus forecasts.
The research house said on Thursday, Jan 27 the hearty numbers were mainly attributed to the beverage division. Despite spiralling raw material prices, EBIT margin improved by 1.1 percentage points on-year due to better cost efficiency, economies of scale, higher other operating income and stronger RM against USD.
'With the results being in line, we maintain our FY11 and FY12 earnings forecasts at RM42.3 million and RM48.5 million respectively. Maintain BUY at RM3.51,' it said.
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