KUALA LUMPUR (April 15): Shares of Century Bhd Bhd jumped this morning after PublicInvest Research said the company’s shares were worth at least RM2.19.
At 9.53am, Century Bond rose 6.52% or nine sen to RM1.47 with 688,400 shares done.
In a note today, the research house, which does not have rating on the stock, said Century Bond’s integrated and diversified packaging businesses were valued at only PER of 5-6x compared to the industry average PER of 15x after stripping out its net cash holdings of RM80 million.
“Despite having a solid earnings record over the last 11 years, we think its existing businesses are significantly overlooked mainly because of low visibility on the company, and possibly its small shareholding spread.
“Be that as it may, it does warrant a look. Assuming a 20% discount to the industry average PER of 15x for its packaging business, our SOP-based valuations show that the company being worth at least RM2.19,” it said.