Friday 29 Mar 2024
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KUALA LUMPUR (Feb 20): Affin Hwang Capital Research has upgraded Pecca Group Bhd to “Buy” at RM1.31 with a higher target price of RM1.52 (from RM1.35) and said strong demand for the refreshed Perodua Myvi and new model line-ups from Toyota will likely spur demand for leather seats.

In a note today, the research said that as Pecca is the largest automotive leather upholstery player in Malaysia, its revenue is projected revenue to grow at a CAGR of 6.4% for FY17-20E as more mainstream cars are featuring leather content in entry-level segment cars.

“Potential re-rating catalysts include penetration into leather upholstery for commercial aviation and the Thailand export market,” it said.

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