Zhulian Corp; Hold
Price Target: RM2.80; ZHCB MK

1Q13 net profit of RM29.7m lifted by higher associate contributions and a lower effective tax rate; within expectations. Recovery in pretax profit margins: 1Q13’s 32.5% highest since 4Q11. Declared net DPS of 3.0 sen. Positives factored in share price with 56% gain over the last 12 months. The stock is trading at +2 SD of its 5-year PE mean. Maintain HOLD with RM2.80 TP.

Source: HwangDBS Research - 18 Apr 2013