KUALA LUMPUR (Sept 12): Hup Seng Industries wasn't able to turn Hong Leong Investment Bank more positive on the company after the two met. Hong Leong says the cookies and crackers maker hasn't been able to benefit from cheaper commodity costs.
This, coupled with weaker export sales in 1H, leads Hong Leong to cut its target price on Hup Seng to RM1.03 from RM1.08. Nevertheless, Hong Leong maintains its buy rating, saying it still likes Hup Seng for its favorable dividend yield, healthy net cash position and reasonable valuations.
Hup Seng last closed at 91 sen.