KUALA LUMPUR: CIMB Equities Research said Unisem’s 9M14 core net profit beat expectations.
The research house said on Friday the earnings accounting for 105% of its and 91% of consensus full-year estimates.
“The 3Q14 core net profit jumped to RM27.1mil, the highest in 15 quarters, driven by stronger sales volume of higher-margin packages such as wafer-level CSP (WLCSP) and bumping.
“We raise our FY14 to FY16 EPS by 7% to 54%, and maintain our Add rating with a higher target price of RM2.25. This is based on 16.7 times CY16 P/E, 1 standard deviation below its historical mean of 19 times,” it said.
CIMB Research said there were no surprises from Unisem’s analyst briefing.
“However, we were encouraged to learn that the company plans to pare down its borrowings completely by FY15, and it expects to reward its shareholders with higher dividends as it progressively returns to profitability,” it said.
http://www.thestar.com.my
The research house said on Friday the earnings accounting for 105% of its and 91% of consensus full-year estimates.
“The 3Q14 core net profit jumped to RM27.1mil, the highest in 15 quarters, driven by stronger sales volume of higher-margin packages such as wafer-level CSP (WLCSP) and bumping.
“We raise our FY14 to FY16 EPS by 7% to 54%, and maintain our Add rating with a higher target price of RM2.25. This is based on 16.7 times CY16 P/E, 1 standard deviation below its historical mean of 19 times,” it said.
CIMB Research said there were no surprises from Unisem’s analyst briefing.
“However, we were encouraged to learn that the company plans to pare down its borrowings completely by FY15, and it expects to reward its shareholders with higher dividends as it progressively returns to profitability,” it said.
http://www.thestar.com.my
