KUALA LUMPUR (Aug 6): Affin Hwang Capital Research has upgraded SLP Resources Bhd (SLP) to a “Buy” at RM1.12 with a highher target price of RM1.33 (from RM1.07) and said SLP reported a good set of results – 1H18 core net profit grew 17% y-o-y to RM11.7 million on higher EBITDA, interest income and lower tax rates.

In a note today, the research house said the 1H18 results came in above house expectations due to higher-than-expected margins on better sales mix and the Group’s ability to pass down higher resin costs.

“At 13x FY19E PER, valuation looks attractive relative to peer.

“Upgrade to Buy with a higher target price of RM1.33,” it said.