KUALA LUMPUR (Feb 18): CIMB Research has maintained its “Hold” rating on Oriental Holdings Bhd at RM6.96 with a higher target price of RM7.57 (from RM7.44) and said Oriental’s FY14 core net profit beat house forecast by 11%, mainly due to stronger-than-expected automotive earnings.
In a note today, the research house said the company declared an interim DPS of 6 sen, which was above house dividend estimate of 4 sen per share for the interim and 8 sen for the full year.
CIMB Research said it expects Oriental to declare the final dividend by May.
“We raise our FY15-16 EPS by 10% to account for stronger automotive earnings.
“This leads to a higher target price of RM7.57, based on its 5-year historical average P/BV of 0.9x. The stock remains a Hold due to limited upside potential.
“We prefer First Resources for exposure to the regional planters,” it said.