Friday 29 Mar 2024
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KUALA LUMPUR (Sept 27): Affin Hwang Capital Research has maintained its “Buy” rating on Scientex Bhd at RM8.89 with a higher target price of RM10.50 (from RM9.90) and said Scientex reported a surprisingly strong set of results: FY19 core net profit expanded by 24% to RM353 million on better performance from both its property and manufacturing segments.

In a note today, the research house said that overall, Scientex’s FY19 results were ahead of street and house expectations.

“We believe the increased plant utilisation rates and resilient demand for affordable housing will boost FY20-22E earnings.

“In view of the better-than-expected results, we raise our FY20-21E core EPS by 7-10%.

“We revise our target price higher to RM10.50 (from RM9.90) based on our SOTP valuation. Reaffirm Buy,” it said.

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