KUALA LUMPUR (April 23): CIMB IB Research has initiated coverage on DKSH Holdings (M) Bhd at RM2.60 with an “Add” rating and target price (TP) of RM3.63 and said DKSH is a leading market expansion services (MES) provider in Malaysia, serving more than 180 clients and 16,000 customers domestically.

In a note April 22, the research house said DKSH is poised to benefit from market expansion services demand growth through its established presence in Malaysia and its recent acquisition of Auric Pacific.

“Current 7.2x FY20F P/E appears attractive. We initiate coverage with an Add and a TP of RM3.63 based on 10x CY20F P/E (in line with 10-year mean),” it said.