KUALA LUMPUR (July 5): Hong Leong IB Research said although Tomypak Holdings Bhd’s share prices could encounter selling pressures in the near term following the floatation of new rights issue, the divergence in share price and fundamentals present an opportune window to accumulate as valuations become attractive.

In a trading idea note today, the research house said that at RM1.86, Tomypak’s 12.5x FY17 P/E is trading at 22% discount to Daiboci Plastic & Packaging Industry Bhd.

“Benchmarking P/B, Tomypak is trading at 46% discount to peers’ P/B and 45% to Daiboci’s P/B, respectively.  

“Our long term fair value for Tomypak is RM2.36 (+26.9% upside), ascribing about 30% discount (due to its smaller revenue, marketcap and market share) of Daiboci’s 3.13 P/B on its proforma BVPS of RM1.08,” it said.