Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 20): RHB Research Institute Sdn Bhd has maintained its “Buy” rating on CB Industrial Product Holding Bhd (CBIP) at RM1.66 with a lower target price of RM2 (from RM2.20) and said CBIP is confident of last year’s backlog of oil mill contracts coming through in 2018, and targets doubling up its new oil mill orderbook this year.

In a note today, the research house said that in addition, the benefit from CBIP’s pioneer tax status (70% tax rebate for its oil mill engineering revenue) should be more significant from end-FY18.

“These positives should help more than offset the impact of the weakening US Dollar and higher steel prices.

“Maintain Buy, for its 12% 3-year earnings CAGR and 5-6% prospective net dividend yield.

“We fine-tune our target price to RM2.00 (from MYR2.20, 20% upside) post earnings revisions,” it said.

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