Friday 29 Mar 2024
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KUALA LUMPUR (July 1): Hong Leong Investment Bank (HLIB) Research has initiated coverage of HIL Industries Bhd at 99.5 sen with a “buy" rating and a target price (TP) of RM1.14 and said HIL’s earnings growth momentum will sustain into FY22-24.

In a note on Friday (July 1), the research house said growth will be underpinned by: i) increasing plastic manufacturing for the automotive industry driven by major clientele Perodua, Toyota and Honda with higher content/car; and ii) growing contributions from its pipeline of new property launches in FY22-24.

“We derive a TP of RM1.14 (on a fully diluted basis) for HIL based on SOP consisting of: i) P/E 12x FY23 contribution from manufacturing segment earnings; ii) P/E 12x FY23 contribution from the property segment; and iii) company warrant proceeds of RM59.7 million.

“The group has a strong balance sheet with net cash of RM125.4 million (37.8 sen/share) as at 1QFY22,” it said.

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