KUALA LUMPUR (Apr 9): Shares of Signature International Bhd jumped 5.78% at mid-morning today after CIMB Research said investors should remain invested in the stock and that not many companies in the domestic stock market have a 3-year EPS CAGR of 39%.
At 10.29am, Signature rose 13 sen to RM2.38 with 2.01 million shares done.
In a note on April 8, CIMB Research maintained its “Add” rating on Signature and said the stock was one of the top small-cap gainers in March, up 14.7% month-on-month (m-o-m) (FBMSC was down 2% mom).
“Even after the recent rally, the stock’s valuation is still attractive at only 6x 2016 P/E, with a 5% to 6% dividend yield.
“We maintain our EPS forecasts and target price, based on an unchanged 30% discount to SOP (to reflect its small cap and tight trading liquidity). Securing major jobs and expanding profit margins are potential re-rating catalysts for the stock. Signature remains an Add,” it said.