Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 27): Hong Leong IB Research has maintained its “Buy” rating on Evergreen Fibreboard Bhd with a higher target price of RM2.53 (from RM2.10) and said it continued to see value to the company, due to: (1) A stronger-than-expected US dollar against the ringgit, which in turn was favourable to Evergreen’s bottomline; (2) Benefits from management’s ongoing efforts to improve Evergreen’s operational efficiencies will start kicking in gradually.

In a note today, the research house said it continued to see the possibility of Evergreen resumes paying dividends as early as 2016, given its improving earnings fundamentals.

“FY15-17 net profit forecasts raised by 12.2-21.6% respectively, largely to account for a higher US dollar to ringgit assumption of RM3.80/US$ (vs. RM3.60/US$ previously).

“Maintain our Buy recommendation, with a higher target price of RM2.53 (from RM2.10 previously) based on unchanged 11x but revised 2016 EPS of 23 sen,” it said.

 

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