Johore Tin, Trading Buy; RM1.86
Fair Value: RM2.60; JOHO MK
Cheapest F&B stock

Undervalued consumer stock with successful venture into F&B business. Impending catalyst from capacity expansion to capture strong product demand. Stable recurring income from tin manufacturing to ride on strong, resilient demand for F&B products. Compelling valuation at 7x PE, 15% ROE, 3% dividend yield and net cash for an up-and-coming consumer play; 40% upside to RM2.60 fair value.

Source: HwangDBS Research - 5 Jul 2013