KUALA LUMPUR (Nov 29): Kim Hin Industry Bhd shares jumped 4.17% at the noon break today, after Affin Hwang Capital Research upgraded the stock to “Buy” at RM1.44, with an unchanged target price of RM1.73.
At 2pm, Kim Hin was up 6 sen to RM1.50, with 45,800 shares traded.
In a note today, Affin Hwang Capital said Kim Hin's 3Q17 result showed a strong rebound with a net profit of RM5.9 million (RM600,000 in 2Q17), driven by higher revenue and improvement in operating profit margin.
It said for 9M17, net profit still showed a 52% year-on-year decline to RM8.2 million, from a high base in 9M16.
“Bottom line was boosted by net exceptional gain of RM2.3 million in 9M17.
“We lift our EPS forecasts by 6-27% in FY17-19E, to reflect the net exceptional gain in FY17 and better operating performance.
“Following the correction in the share price, potential upside to our target price of RM1.73 (based on target FY18E Price/book of 0.45x) has 20%, prompting us to upgrade our recommendation to a Buy from Hold,” the research house said.