KUALA LUMPUR (July 8): Shares of Scientex Bhd and SLP Resources Bhd advanced this morning after Kenanga IB Research has upgraded the Plastics & Packaging sector to “Overweight” from Neutral and said it believes the plastic sector will fare well for investors in coming quarters with industry favourable macroeconomic factors such as resin cost and exchange rates remaining largely unchanged.
At 10.36am, Scientex and SLP rose 2 sen respectively to RM12.76 and RM2.80.
In a note today, Kenanga IB Research said post reviewing valuation methodology, it had upgraded its call for Scientex, resulting in all Plastic Manufacturers under its coverage warranting an “Outperform” call on higher target prices; Scientex (TP: RM15.13), SLP Resources (TP: RM3.11), and Teck Guan Perdana Bhd (TP: RM4.49).
“Our Top Picks are Scientex and SLP on strong upsides from current levels.
“While the sector has fared well over the last one year, the sector is rerating given the changes in demand needs for flexible packaging,” it said.