Printer-friendly versionSend by emailPDF version KUALA LUMPUR (March 16): Hong Leong IB Research has initiated coverage on Homeritz Corporation Bhd ( Financial Dashboard) with a “Buy” rating and target price of RM1.54 and said the company could benefit from stronger US dollar (USD).
In a note Monday, the research house said sensitivity analysis shows that every ten sen/USD appreciation would boost FY15 net profit by about 6%.
“With increasing consumer demand in global market according to CSIL (Centre for Industrial Studies) research report, we believe that the Group will target more revenue contribution from the global market by marketing their products in international furniture fairs and furniture-buyers’ magazines,” it said.
HLIB Research said Homeritz’s margin would be boosted by improvement in utilisation rate, stable leather prices, strong USD as well as reduction in labor cost dependency.
“Homeritz’s revenue and PATAMI are expected to grow at CAGR of 8% and 14% respectively from FY14 to FY16. The Group has net cash per share of 23 sen and attractive dividend yield of 4.3% with 40% dividend policy.
“We initiate coverage of the stock with a Buy call and target price of RM1.54, based on 10x P/E which is premium to the furniture industry average P/E of 8x as we forecast the Group’s CAGR growth at 14%.
“On technical perspective, share price is expected to move higher due to solid long-term uptrend line and bullish indicators,” it said.
I just bought this one just now, it already test to break 1.23 several times, if can break, potential upside may as HLB research. Today it may test again 1.23 as the market positif. Just my 2 cent view...
I project next wave might reach 1.40, with stop loss 1.10, based on current price... risk reward ratio is 1:3. RM1.20 not so long que if the trend start back. Also, they might not really genuine seller... that is my 2 cent analysis based on technical.
Yeah, it depend on which type of investor you are, for me, i predict short term from now, within 2 weeks. I pray good luck to intermediate investor n long term investor... :)
means someone wants to buy a big portion of the company shares, instead of going directly to open market to buy, they buy from one of the directors. If the director agrees to sell some portion of their ownings, then the deal is settled internally at the current market price.
Therefore, the ownership of the shares will be transferred to the buyer.
the effect is that the person that wants to buy heavily on Homeritz will not intentionally spike up the price of the share, because of so big demand in units, his buying might create price movements upwards. i hope its not cold eye !
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
hellokitty123
81 posts
Posted by hellokitty123 > 2015-03-11 16:47 | Report Abuse
:)