RHB Research starts coverage on 7-Eleven, fair value RM2

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KUALA LUMPUR (Oct 28): RHB Research has initiated coverage on 7-Eleven (Malaysia) Bhd at RM1.68 with a fair value of RM2, representing a 19% potential upside return.

In a note Tuesday, the research house said its fair value was based on a 28x FY15F P/E multiple which is a 17% premium over its regionally-listed peers’ average P/E of 24x.

“We are positive on its well-planned growth strategy and promising outlook for the convenience store industry in Malaysia and estimate a 3-year earnings CAGR of 29.1% over 2013-2016F,” it said.