KUALA LUMPUR (Aug 19): Hong Leong IB Research has upgraded CB Industrial Product Holding Bhd to “buy” (from “hold”) with a target price of RM2.13 and said the company’s 1HFY15 core net profit of RM39.8 million (down 10.4%) came in within expectations, accounted for 47.4% and 49.1% of market and our full-year forecasts.

In a note today, the research house said it maintained earnings forecasts and SOP-derived target price of RM2.13.

“Recommendation upgraded from 'hold' to 'buy' as value has emerged following the recent selldown.

“Also, we note the earnings visibility at its palm oil mill engineering division and balance sheet,” it said.