YSP Southeast Asia rises 7.29% on positive technical outlook, target price upgrade

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KUALA LUMPUR (Nov 20): Shares in YSP Southeast Asia Holding Bhd rose 7.29% at mid-morning today following a positive technical outlook and target price upgrade for the stock.

At 9.57am, YSP rose 17 sen to RM2.50, for a market capitalisation of RM348.96 million.

CGS-CIMB Research has maintained its "Add" rating on YSP at RM2.33 with a higher target price (TP) of RM3.65 (from RM3.05) and said it deemed the company's 9M19 core net profit of RM18.8 million (down 30.6% year-on-year) to be in line with expectations, at 70% of house and 71% of Bloomberg's full-year forecasts.

In a note Nov 19, the research house said the decline in 9M19 core net profit was attributed to higher raw material prices and increase in depreciation costs.

"Maintain Add, with a higher TP of RM3.65 (12.3x CY21F P/E)," it said.