Bursa Malaysia Stock Watch

Guan Chong Berhad - Sweet Like Chocolate

kltrader
Publish date: Wed, 26 Sep 2012, 09:32 AM
kltrader
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  • Current valuations are undemanding, trading at 7.2x FY12 and 6.5x FY13 PER vs an average PER of 12x for the small/mid-cap consumer sector and 19x for Petra Foods listed on SGX.
  • We believe GCB would be rerated to at least 8x FY13 PER as its liquidity improves, translating to a TP of MYR2.46 (+23% upside). The GCB-WA, trading at a 2% premium with 2.8x gearing, offers a cheaper entry.
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Source: Maybank Research - 26 Sep 2012
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