Tuesday, November 30, 2010

Boustead : Quarterly Result

Quarterly Result
9MFY10 core net profit of RM253.6m accounting for 66.9% and 61.6% of our and consensus full-year estimates. We consider this within our expectation as we expect a stronger 4Q arising from higher CPO prices (which has risen by 12.6% since Oct).

Rating
Still undervalued despite recent share price run up, P/E and P/B still not demanding, relatively high and quarterly net dividend yield, double-digit earnings growth in FY10-11 and market yet to fully appreciate the hidden values.

Valuation
Target price maintained at RM6.82 (at 10% holding company discount to unchanged SOP of RM7.58).


Disclosure :-
Author has an interest in Boustead Holding Bhd

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